Morgan Stanley reiterates Equalweight rating on Celsius stock amid strong sales

Published 08/07/2025, 13:34
Morgan Stanley reiterates Equalweight rating on Celsius stock amid strong sales

Investing.com - Morgan Stanley (NYSE:MS) has reiterated its Equalweight rating and $42.00 price target on Celsius Holdings (NASDAQ:CELH) following robust scanner data for the energy drink maker. The company, currently valued at $11.79 billion, has demonstrated strong financial health with a "GREAT" rating according to InvestingPro metrics, maintaining a healthy balance sheet with more cash than debt.

The combined sales growth for Celsius and its Alani Nu brand reached 40% year-over-year for the two weeks ended June 28, 2025, according to NielsenIQ xAOC+C channel data, though this represented a slight deceleration from the 42% growth recorded in the previous two-week period.

The Celsius brand itself posted 9% year-over-year sales growth for the latest two-week period, maintaining the same growth rate as the prior week and showing a slight improvement from the 8% growth recorded two weeks earlier.

Alani Nu, meanwhile, demonstrated significantly stronger growth at 135% year-over-year for the latest two-week period, though this marked a slowdown from the 149% growth seen in the previous two weeks, with Morgan Stanley noting contributions from both the base business and the Cotton Candy limited-time offering.

The combined market share for both brands, excluding powders, decreased slightly by 10 basis points sequentially to 15.8% of the energy drink market. The company maintains strong liquidity with a current ratio of 3.38, indicating robust operational efficiency.

In other recent news, Celsius Holdings has been the focus of several analyst reports highlighting its growth prospects and strategic acquisitions. The company recently completed the acquisition of Alani Nu for $1 billion, which has been identified as a significant expansion of its product portfolio. This acquisition is expected to enhance Celsius’s market presence, with analysts from Truist Securities noting an 88% year-over-year increase in Alani Nu’s sales for a recent 13-week period.

Several firms have adjusted their price targets for Celsius Holdings. Truist Securities raised its target to $50, while Piper Sandler and Jefferies increased theirs to $45, maintaining Buy ratings. Analysts from these firms have expressed optimism about Celsius’s growth trajectory, with Piper Sandler expecting strong retail sales growth for Alani Nu and Jefferies highlighting positive margin guidance.

TD Cowen reiterated its Buy rating, emphasizing confidence in Celsius’s growth outlook and the potential of the Alani Nu acquisition. Stifel also resumed coverage with a Buy rating, citing expectations for improved sales growth and distribution expansion. These developments reflect a general consensus among analysts on the promising future of Celsius Holdings as it integrates Alani Nu into its operations.

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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