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10/13/09 11:04 AM

#1637947 RE: TITAN #1632756

Celsius Holdings initiated with a Buy at Ladenburg; tgt $0.90 (CSUH) 0.45 : Ladenburg initiates CSUH with a Buy and sets a tgt of $0.90. The firm expects CSUH to experience significant revenue growth as it benefits from its product positioning, retail expansion, recent distribution and marketing deals, new product launches, and greater consumer awareness from television advertising. While the gross margin should improve due to greater scale economies, the firm believes that selling and marketing expenses should increase significantly to support advertising plans and sponsorship deals. Despite recent financing to support marketing the firm believes that the company will require additional funds to sustain its growth. Although speculative, the firm believes that an investment in CSUH may be rewarding if the company effectively executes its expansion and generates further demand.

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