Shares of energy drink company Celsius (NASDAQ:CELH) fell 7.6% in the morning session after Bank of America analyst Jonathan Keypour downgraded the stock's rating from Buy to Neutral. The analyst cited the potential for increased competition as the company tries to expand product visibility via shelf expansion. He added, "We still see strong sales and EBITDA potential, but wait for stronger velocity to signal a resumption of momentum in market share gains."
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Celsius? Access our full analysis report here, it's free.
What is the market telling us:
Celsius's shares are very volatile and over the last year have had 27 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Celsius is down 10.3% since the beginning of the year, and at $52.87 per share it is trading 22.7% below its 52-week high of $68.42 from September 2023. Investors who bought $1,000 worth of Celsius's shares 5 years ago would now be looking at an investment worth $43,268.
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