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On Thursday, Piper Sandler adjusted its price target for Celsius Holdings (NASDAQ: NASDAQ:CELH), increasing it to $44.00 from the previous $43.00 while maintaining an Overweight rating. The adjustment follows an observed improvement in Celsius’ top-line trend since late January. According to InvestingPro analysis, the company appears undervalued at its current market cap of $8.62 billion, with analysts expecting 55% revenue growth this year. According to Piper Sandler, the company’s retail sales have shown a positive turn in the latest week of retail scanner data.
Celsius Holdings, which competes in the energy drink market, has been performing on par with industry giants like Monster Beverage Corporation (NASDAQ:MNST) and Red Bull in terms of market share among teenagers, according to Piper Sandler’s Spring 2025 teen survey. This alignment is seen as a positive leading indicator for the company’s market position and potential growth. The company’s strong market position is reflected in its impressive 39% year-to-date stock performance, as reported by InvestingPro, which offers 14 additional valuable insights about CELH’s growth prospects.
In addition to the favorable sales trends, Piper Sandler noted that Alani Nu, another player in the beverage sector, continues to demonstrate strong top-line momentum. The firm anticipates this trend will persist and has updated its financial model to reflect the positive outlook for both Alani Nu and Celsius.
Despite the potential challenges posed by aluminum tariffs, which could impact Celsius Holdings’ margins, Piper Sandler considers the exposure manageable. The firm has accounted for a modest margin hit in its analysis but also recognizes that modest pricing adjustments could serve as a counterbalance. The company maintains a strong financial position with a "GREAT" overall health score from InvestingPro, supported by a healthy gross profit margin of 50.2% and more cash than debt on its balance sheet.
Reflecting these factors, Piper Sandler has raised its 2025 earnings per share (EPS) estimate for Celsius Holdings from $0.91 to $1.00. The revised price target of $44.00 represents the firm’s confidence in the company’s ability to navigate market conditions and maintain its growth trajectory. The company currently trades at a P/E ratio of 80.6x, with analysts expecting continued profitability this year.
In other recent news, Celsius Holdings has completed its acquisition of Alani Nutrition for $1.8 billion. This strategic move is expected to bolster Celsius’s position in the functional beverage market, particularly in the energy drink sector. Truist Securities has upgraded Celsius Holdings’ stock rating from Hold to Buy, raising the price target from $35 to $45. The upgrade reflects confidence in the long-term benefits of the Alani Nu acquisition, which is seen as strengthening Celsius’s position in the women’s segment of the U.S. energy drink market. Morgan Stanley (NYSE:MS), however, maintained its Equalweight rating on Celsius with a $42 price target, noting slight improvements in recent sales data but expressing caution due to ongoing weak retail sales. In contrast, Jefferies has adjusted its outlook on Constellation Brands (NYSE:STZ), raising the price target to $201 while maintaining a Hold rating. Jefferies anticipates challenges for Constellation Brands in the upcoming quarter, citing factors like subdued demand and rising inflation expectations. These developments highlight the dynamic nature of the beverage industry, with companies navigating acquisitions and market pressures.
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