Celsius stock rating reiterated at buy by TD Cowen on growth outlook

Investing.com - TD Cowen has reiterated its buy rating and $55.00 price target on Celsius Holdings (NASDAQ:CELH), citing confidence in the energy drink maker’s growth trajectory. According to InvestingPro data, the company maintains strong financials with a current ratio of 3.38 and minimal debt, while trading at a premium P/E ratio of 139.8.

The research firm noted that a recent call with Celsius management reinforced its positive view on the company’s prospects. TD Cowen believes that second-quarter sales consensus estimates incorrectly model accelerating scanner trends and fail to account for easy comparisons to last year’s inventory destocking period. InvestingPro analysis reveals analysts expect robust revenue growth of 61% for FY2025, with multiple additional insights available to subscribers.

The firm expects Celsius stock will trade higher as investors gain confidence in the Celsius brand’s return to growth following previous challenges. The company’s core products appear to be regaining momentum in the competitive energy drink market.

TD Cowen also highlighted the distribution opportunity for the recently acquired Alani Nu brand as a potential catalyst for future growth. This acquisition represents a significant expansion of Celsius Holdings’ product portfolio.

The reiterated buy rating follows TD Cowen’s previous upgrade of the stock, suggesting continued confidence in Celsius Holdings’ business strategy and market position within the functional beverage category.

In other recent news, Celsius Holdings has been at the center of several significant developments. The company recently completed a major acquisition of Alani Nu for $1 billion, which is expected to enhance its market presence. This acquisition has been a focal point for analysts, with Stifel resuming coverage of Celsius Holdings with a buy rating, citing expectations for improved sales growth and the benefits of deal synergies by 2026. Truist Securities also raised its stock price target to $50, highlighting the addition of a new Chief Operating Officer to support a distribution deal with Pepsi.

Piper Sandler increased their price target for Celsius Holdings to $45, maintaining an Overweight rating and noting strong retail sales growth for Alani Nu. Jefferies also adjusted its price target to $45, reaffirming a Buy rating and expressing optimism about the acquisition’s impact on the company’s financial performance. Conversely, TD Cowen maintained a Hold rating with a $37 target, noting no significant surprises in the recent financial outlook. These developments underscore the strategic moves Celsius Holdings is making to bolster its position in the energy drink market.

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