Celsius Holdings stock climbs after Wedbush names it 'top overall pick'

Yahoo Finance Live reviews a report of Wedbush naming Celsius Holdings 'top overall pick,' and placed them in the best ideas list, as shares continue to climb.

Video transcript

- All right. My play is Celsius Holdings. Shares feeling awfully pumped up today on news that Wedbush named the energy drink a top overall pick. CELH is down 10% this year. But equity analyst Gerald Pascarelli writes, quote, "we believe the year-to-date pullback creates a compelling entry point for investors looking for exposure to the," and here's the best part, "most disruptive and fastest growing company in all of CPG.

Wedbush naming Celsius to its Best Ideas List and rated them as their top overall pick in August of last year. PepsiCo invested $550 million and the energy drink. In the process, they became the preferred global distributor. In the category, though, Red Bull has the big share, 37%. Monster, 35%. Celsius, 5.6%. But they boast the strongest sales growth over the last 12 weeks at 141%. Wedbush has a price target of 115, implying 27% upside. This is a big opportunity, says Wedbush. And it's also the reason I am getting through this show. I'm a big fan of the drinks. Drink a lot of them.

- Are you?

- This is the guava. Yeah. I just find them less crash than the others and less junk in them.

- People that drink them love them. I would say the following is almost like a cult-like following. Once you start buying them, I've noticed people tend to consume a lot of them. And, Dave, I didn't know that you were one of those people. But when we talk about the growth of this company, it is amazing. You mentioned the revenue growth that we've seen this year. 2022 was up over 100% from 2021 sales. So this upward, massive, quick trajectory that the company is on, obviously, it's a huge win here so far for Pepsi. And Wedbush isn't the only name out there that really, really likes Celsius. Bernstein was out with the note on Pepsi naming Celsius as one of the reasons to be positive here on that larger play.

- I think how quickly this brand has been able to gain traction and recognition has just been insane to watch. And this is a very competitive market. You're going up against--

- That's the key.

- --some legacy brands.

- Yes. Monsters--

- Exactly.

- --for lack of a better term.

- And I agree with you, Seana, that the people that enjoy Celsius are hardcore about it. And I think notes like this really help investors try and make that decision when you're analyzing this market where there's a lot of options.

- Your point's a good one, Allie, because not just big companies, but they came into a saturated space. And I think everyone's consensus was, why would you get in this market?

- The beverage category is tough.

- It's already oversaturated. Yeah, they didn't listen. They came right in. I would like to talk to their CEO, perhaps next week. They rely heavily on TikTok. They have grown exponentially on TikTok. Check out the hashtag. I would be curious how they'd be impacted by a potential ban.

- Is that your favorite flavor?

- I don't know. I like about four or five of them.

- I got to try it. People love it.

- Yes, it is. I think guava probably is. You made me really think about it.

- OK. Well, now it is. I'm making you choose. All right.