Celsius Holdings, Inc. (NASDAQ:CELH) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. Celsius Holdings has also found favour with investors, with the stock up a notable 10% to US$54.15 over the past week. Could this upgrade be enough to drive the stock even higher?

Following the upgrade, the latest consensus from Celsius Holdings' three analysts is for revenues of US$226m in 2021, which would reflect a huge 48% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to rise 5.7% to US$0.13. Before this latest update, the analysts had been forecasting revenues of US$196m and earnings per share (EPS) of US$0.10 in 2021. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

See our latest analysis for Celsius Holdings

It will come as no surprise to learn that the analysts have increased their price target for Celsius Holdings 14% to US$68.08 on the back of these upgrades. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Celsius Holdings, with the most bullish analyst valuing it at US$92.00 and the most bearish at US$55.25 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Celsius Holdings shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Celsius Holdings' growth to accelerate, with the forecast 69% annualised growth to the end of 2021 ranking favourably alongside historical growth of 40% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.5% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Celsius Holdings to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Celsius Holdings could be worth investigating further.

Analysts are clearly in love with Celsius Holdings at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as dilutive stock issuance over the past year. For more information, you can click through to our platform to learn more about this and the 1 other concern we've identified .

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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