Celsius stock: Cramer says ‘be careful in betting against’ $CELH

A 35% hit to Celsius Holdings Inc (NASDAQ: CELH) in less than a month spells opportunity to invest at a discount, says Jim Cramer.

Jim Cramer shares his view on Celsius stock

Celsius stock has been taking a beating ever since Morgan Stanley talked of slowing trends in its research note. But the Mad Money host is not convinced that it’s entirely true.

For one, the energy drinks company is doing “very well” in terms of sales at Costco, Cramer said on CNBC’s “Morning Meeting” today.

What’s interesting is that the analysts at Morgan Stanley rate CELH shares at “equal-weight” as data points to a sequential decline in sales growth. Still, their $75 price target signals potential for a 15% gain.

$CELH may be worth owning in June because it recently disclosed plans of expanding sales and distribution to Ireland, Australia, New Zealand, France, and the United Kingdom in 2024.

Celsius stock that does not currently pay a dividend is up some 40% versus its 52-week low at writing.

$CELH reported record revenue for fiscal Q1

Morgan Stanley talked of a sequential decline in the market share of Celsius Holdings Inc from 10.8% to 10.5% in its recent research note.

But Jim Cramer remains constructive on the beverage company because “a couple of months does not make a negative trend”. In fact, $CELH reported record revenue of $355.7 million (up 37% YoY) for its first quarter in May.

The Nasdaq-listed firm also saw its gross profit climb to an all-time high of $182.2 million (up 60% YoY) in Q1. At the time, John Fieldly – chief executive of Celsius Holdings Inc attributed the quarterly strength to “early impact of shelf space gains, which we believe will serve as a flywheel for our continued growth”.

The $15 billion company based out of Boca Raton, Florida counts PepsiCo as a distribution partner and sees “huge opportunities in the convenience channel”.

All in all, famed investor Jim Cramer recommended being “careful in betting against these guys” on CNBC today. Who shares his optimism on Celsius stock is Mark Astrachan – a Stifel analyst. Astrachan sees upside in CELH shares to $95.