Pepsi (PEP) announced earnings this morning (no position), and they mentioned their distribution partnership with fast-growing “energy drink,” Celsius Holdings (CELH).
We continue to own shares of Celsius in our Disciplined Growth Portfolio as the brand continues to grow rapidly. No earthshattering news on the Pepsi call (Celsius announces its own earnings on May 10th), but Pepsi CEO Ramon Laguarta was very positive, explaining:
The partnership with CELSIUS is strong, and it's helping us to gain scale in our go-to-market, specifically in some channels where we need volume to justify some of the economics of the call. So that role continues.
We're pleased with the partnership. Energy is a fast-growing category, profitable, that is great for our portfolio. So that's what I would say. We remain pleased with the partnership and we'll continue to build the partnership going forward.
Wall Street analyst also continue to have a positive view of Celsius, rating it (on average (a strong buy) with 36% upside from its current market price.
Long Celsius.