Spain’s credit rating upgraded to ’A+’ by S&P on strong growth
Investing.com - Goldman Sachs has initiated coverage on Celsius Holdings (NASDAQ:CELH) with a Buy rating and a price target of $72.00, citing the company as "one of the best growth stories in broader CPG." The stock, currently trading at $56.22, has delivered an impressive 113% return year-to-date, according to InvestingPro data.
The investment bank highlights Celsius’ position in the functional energy drink market, noting the company has demonstrated an impressive ability to grow and capture market share in a competitive industry. This is evidenced by its strong 78% revenue CAGR over the past five years and healthy gross margin of 50.5%. Goldman Sachs expects Celsius to maintain double-digit topline growth driven by volume, along with margin expansion.
Celsius currently holds approximately 17.3% share of the U.S. energy drink category as of August 7, 2025, representing a 180 basis point increase year-over-year. This growth has come primarily from expanding the category and taking share from competitors including Bang, Red Bull and Monster Beverage.
Goldman Sachs points to the attractive nature of the energy drink category, which has rebounded with approximately 14% growth year-to-date through August 23 in tracked channel scanner data. The firm’s retail contacts expect the U.S. energy drink category to grow by 12% this year.
While acknowledging that future share gains may become more challenging for Celsius, as evidenced by recent uneven share performance, Goldman Sachs remains confident in the company’s ability to continue taking market share and expanding the energy drink category, particularly following its acquisition of Alani Nu. The company maintains a GOOD financial health score according to InvestingPro, which offers 15+ additional insights about Celsius’s growth prospects and valuation metrics in its comprehensive Pro Research Report.
In other recent news, Celsius Holdings has been in the spotlight with several key developments. Jefferies raised its price target for Celsius to $72, citing the company’s updated partnership with PepsiCo. This deal includes the acquisition of the Rockstar Energy brand, expected to add approximately $250 million in annual revenue by the third quarter of 2026. Truist Securities also increased its price target to $70, reflecting the integration of Alani Nu into PepsiCo’s distribution system. Piper Sandler raised its target to $69, emphasizing Celsius’ improved distribution position as PepsiCo’s category captain. Needham adjusted its price target to $70, considering the impacts of the Rockstar acquisition and Alani’s transition into PepsiCo’s network. In addition to these financial updates, Celsius Holdings announced a restructured marketing leadership team, appointing Rishi Daing as Chief Marketing Officer. These developments highlight significant strategic moves by Celsius Holdings in collaboration with PepsiCo.
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