Jefferies raises Celsius Holdings stock price target to $45

Published 29/05/2025, 17:32
Jefferies raises Celsius Holdings stock price target to $45

On Thursday, Jefferies analyst Kaumil Gajrawala adjusted the price target for Celsius Holdings (NASDAQ:CELH) stock, increasing it slightly to $45.00 from the previous $44.00, while reiterating a Buy rating on the shares. The adjustment follows a recent modeling call regarding the company’s acquisition of Alani Nu, a transaction that has been closely monitored by investors and analysts alike. According to InvestingPro data, CELH currently trades at $35.59, with analysts’ targets ranging from $30 to $58, suggesting potential upside. The company maintains strong financial health, earning a "GREAT" rating in InvestingPro’s comprehensive analysis.

Gajrawala’s commentary highlighted the positive outlook for Celsius Holdings, noting that the 2025 combined margin guidance provided by the company aligns with market expectations, forecasting an adjusted EBITDA in the range of 17-20%, versus the 19% anticipated by the Street. Additionally, the estimated synergies from the Alani Nu deal are on track, expected to be around $50 million. The company currently maintains a healthy gross profit margin of 50.43% and is expected to see substantial revenue growth of 61% in FY2025, according to InvestingPro analysis.

The analyst also mentioned that there were no surprises in the recent call, which is a reassuring sign for stakeholders. The increase in the price target is attributed to the strong momentum of the Alani Nu brand, which is anticipated to contribute significantly to Celsius Holdings’ revenue. Gajrawala expressed continued optimism about the acquisition and its potential impact on the company’s financial performance.

As the integration of Alani Nu progresses, Jefferies will be closely observing the trends and the effectiveness of the merger. The firm’s confidence in Celsius Holdings’ strategy and execution is evident in the reaffirmed Buy rating and the updated price target, suggesting a belief in the company’s growth trajectory and the value of the recent acquisition.

In other recent news, Celsius Holdings reported its Q1 2025 earnings, which revealed a slight miss on both earnings per share (EPS) and revenue forecasts. The company posted an EPS of $0.18, falling short of the expected $0.20, and revenue of $329.3 million, below the anticipated $348.62 million. Despite these results, Celsius Holdings expanded its gross margin by 110 basis points to 52.3%, indicating improved operational efficiency. The company also announced the implementation of two new stock plans and an increase in authorized shares, which were approved during its Annual Meeting of Stockholders.

Analyst firms have varied views on Celsius Holdings’ stock. TD Cowen maintained a Hold rating with a price target of $37.00, noting the company’s strategic plans and operational efficiencies. BofA Securities, on the other hand, kept an Underperform rating with a $30.00 target, citing complexities in assessing underlying demand and promotional dynamics. The integration of Alani Nu into the Celsius portfolio is a focal point for future growth, although analysts like Robert Moskow from TD Cowen highlight the need for more clarity on the financial implications of this combination. These developments reflect a dynamic period for Celsius Holdings as it navigates both internal strategic changes and external market challenges.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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