Bill Gross warns on gold momentum as regional bank stocks tumble
Investing.com - Piper Sandler has reiterated an Overweight rating on Celsius Holdings (NASDAQ:CELH) with a price target of $69.00. The energy drink maker’s stock has shown remarkable momentum, delivering a 139.56% return year-to-date and currently trading near its 52-week high of $64.81.
The research firm maintains a positive outlook on the energy drink maker despite potential near-term challenges, including tariffs affecting cost of goods sold and a distribution change for its Alani Nu brand.
Piper Sandler notes these issues have been "well communicated" to investors, adding that Alani Nu’s mid-quarter transition should minimize disruptions from a reporting perspective.
The firm highlights several positive factors supporting its rating, including strong visibility on distribution gains in Spring shelf resets driven by Celsius’s new category captain role, continued product innovation through limited-time offerings for both Celsius and Alani Nu brands.
Piper Sandler also points to Celsius’s evolving marketing strategy tailored to each brand in its portfolio and improved long-term planning with increased coordination across its product line and with PepsiCo as its distribution partner.
In other recent news, Celsius Holdings has secured a $700 million term loan B, which received a ’BB+’ rating from S&P Global Ratings. The company used this new loan, along with $200 million in cash, to repay its previous $900 million term loan. This refinancing effort has allowed Celsius Holdings to reduce interest rates on both its term loan and revolving credit facilities by 0.75%, with no prepayment penalties incurred. Piper Sandler has reiterated its Overweight rating on Celsius Holdings, citing potential upside to third-quarter 2025 sales estimates. The firm noted a possible $50 million increase over its $675 million sales estimate, though consensus estimates are slightly higher at $705 million. Meanwhile, Goldman Sachs has initiated coverage on Celsius Holdings with a Buy rating, highlighting the company’s growth potential in the energy drink market. Piper Sandler also raised its price target for Celsius Holdings to $69.00, influenced by an updated deal with PepsiCo, which enhances Celsius’ distribution and earnings potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.