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On Wednesday, Piper Sandler analysts increased the price target for Celsius Holdings (NASDAQ: NASDAQ:CELH) stock, moving it to $45 from the previous $44, with the stock currently trading at $39.18. The Overweight rating on the stock remains unchanged. The analysts highlighted a positive outlook for 2026, citing stable trends in the company’s core Celsius brand and strong retail sales growth for Alani Nu, a brand under Celsius Holdings. The company’s recent performance has been notable, with a 12.17% return over the past week.
The analysts noted that Alani Nu’s retail sales have seen significant growth, with a 100% increase in the latest four-week period. Despite tariffs affecting gross margins, the momentum remains strong. The company maintains a healthy gross margin of 50.43% and strong liquidity with a current ratio of 3.38. According to InvestingPro, which offers 18+ additional insights about CELH, the company holds more cash than debt on its balance sheet.
Looking forward, the analysts expect top-line trends to improve in early summer, benefiting from easier comparisons and the launch of new innovations and marketing campaigns. As a result, they raised their earnings per share estimates for 2025 from $0.97 to $1.01 and for 2026 from $1.10 to $1.25. These adjustments reflect the updates following the recent deal and Alani Nu’s organic growth momentum. With a market capitalization of $10.1 billion, CELH trades at premium valuation multiples, though InvestingPro’s Fair Value analysis suggests the stock may still have room to run.
The analysts believe there is potential for upside to these new estimates, both in terms of top-line and bottom-line performance. The revised price target reflects approximately four times the estimated enterprise value to sales ratio for 2026.
In other recent news, Celsius Holdings reported first-quarter earnings that did not meet market expectations for both revenue and earnings, according to TD Cowen. Despite this, the integration of Alani Nu is seen as a potential growth driver, with Jefferies highlighting anticipated synergies of around $50 million. Jefferies also increased its price target for Celsius Holdings to $45, maintaining a Buy rating, while TD Cowen raised its target to $37 with a Hold rating. BofA Securities, however, maintained an Underperform rating with a $30 price target, citing complexities in underlying demand and promotional activities.
Celsius Holdings has also expanded its stock incentives and authorized shares following its Annual Meeting of Stockholders. The meeting approved the 2025 Omnibus Incentive Compensation Plan and the 2025 Employee Stock Purchase Plan, allowing for the issuance of additional shares. An amendment to increase authorized common stock to 400 million shares was also approved. These developments are part of the company’s strategy to incentivize and retain talent through stock-based compensation.
Analysts are closely watching how the Alani Nu acquisition will impact Celsius Holdings’ financial performance. Jefferies expressed optimism, while BofA Securities referred to Alani Nu as a "black box" until more information is provided. Investors are awaiting further details on the financial implications of the acquisition, which are expected in an upcoming call later in May 2025.
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