Should you buy Celsius stock after a 17% decline on Tuesday?

Celsius Holdings Inc (NASDAQ: CELH) is down more than 15% today after a Morgan Stanley analyst reiterated his cautious stance on the energy drink company.

Celsius stock could sink further to $75

Dara Mohsenian reiterated his “equal weight” rating on the Nasdaq listed firm this morning. His $75 price objective suggests another 5.0% downside from here.  

The analyst cited data that suggests $CELH sales have lost some pace for his dovish view in a research note on Tuesday.

Despite today’s decline, Celsius stock is up close to 60% versus its year-to-date low in late January.

$CELH is losing market share

Dara Mohsenian sees further downside in Celsius Holdings also because its market share slipped from 10.85 to 10.5% in recent weeks.

Difficult comparisons in the coming quarters could be a headwind for the Florida based company, he added.

All in all, the Morgan Stanley analyst sees a more balanced risk/reward in Celsius stock following a massive gain in 2024. Note that beverage giant PepsiCo has an 8.5% stake in $CELH that does not pay a dividend at writing.