Celsius stock price target raised to $72 from $60 at TD Cowen

Published 02/09/2025, 15:16
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Investing.com - TD Cowen raised its price target on Celsius Holdings (NASDAQ:CELH) to $72.00 from $60.00 on Tuesday, while maintaining a Buy rating on the energy drink maker’s stock. The company’s shares have shown remarkable momentum, delivering a 138.72% return year-to-date, though InvestingPro data indicates the stock is currently trading at premium multiples with a P/E ratio of 155.87.

The firm cited Celsius’ agreement to become PepsiCo’s "energy drink captain" as a key positive factor that should accelerate growth for Alani Nu through expanded distribution.

The new arrangement will give Celsius control over the execution of their combined energy drink portfolio, which now includes Rockstar, according to TD Cowen.

PepsiCo’s increased equity stake in Celsius signals a vote of confidence and further aligns the interests of both companies, the research firm noted.

TD Cowen’s new $72 price target implies a 23.0x multiple on forward 12-month EBITDA estimates, with the firm stating that multiple expansion is warranted due to Celsius’ strong growth profile into 2026. For detailed valuation analysis and 20 additional investment insights, visit InvestingPro, where you’ll find comprehensive research reports covering 1,400+ top stocks.

In other recent news, Celsius Holdings has reported significant developments that have caught the attention of investors. The company recently announced its second-quarter earnings, which exceeded expectations, driven by the successful integration of the Alani Nu brand. This performance has prompted Stifel to raise its price target for Celsius to $56, while TD Cowen increased its target to $60, citing the revival of marketing strategies for the core product line. Additionally, Truist Securities adjusted its price target to $65, reflecting a strong outlook based on the company’s financial results.

Further bolstering its market position, Celsius has expanded its strategic partnership with PepsiCo, which includes gaining control over its brand portfolio and the acquisition of the Rockstar Energy brand in the U.S. and Canada. B.Riley responded to this development by raising its price target for Celsius to $75, maintaining a Buy rating. PepsiCo has also increased its stake in Celsius to 11% through a $585 million investment in convertible preferred stock. These moves are expected to enhance Celsius’s distribution capabilities, particularly with Alani Nu transitioning to PepsiCo’s network in North America.

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