Piper Sandler reiterates Overweight rating on Celsius stock, sees Q3 upside

Published 01/10/2025, 13:20
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Investing.com - Piper Sandler has maintained its Overweight rating and $69.00 price target on Celsius Holdings (NASDAQ:CELH), citing potential upside to third-quarter 2025 sales estimates. According to InvestingPro data, analyst targets for CELH range from $38 to $80, with the stock showing impressive momentum, gaining 10.81% in the past week.

The research firm sees approximately $50 million of likely upside to its own $675 million third-quarter sales estimate, though more modest upside of around $20 million compared to consensus estimates of $705 million.

Celsius retail sales growth increased 13.7% in the third quarter to date, while competitor Alani Nu posted growth of 112.1% during the same period, according to the report.

The energy drink maker is cycling through approximately $100-120 million of inventory de-loading by PepsiCo in the third quarter of 2025, which Piper Sandler estimates will provide about a 45 percentage point lift to quarterly results.

The firm expects tariff pressure in the second half of 2025, beginning in the third quarter, with a slightly larger impact in the fourth quarter as Celsius finishes cycling through tariff-free inventory.

In other recent news, Celsius Holdings has garnered attention with several significant developments. Goldman Sachs initiated coverage of the company with a Buy rating and set a price target of $72, praising Celsius as a standout in the competitive functional energy drink market with strong growth potential. Additionally, Piper Sandler raised its price target for Celsius to $69, highlighting the strategic benefits of the company’s updated deal with PepsiCo, which is expected to enhance earnings power through improved distribution. Truist Securities also increased its price target to $70 following Celsius’s acquisition of the Rockstar Energy brand in the U.S. and Canada from PepsiCo and Alani Nu’s integration into PepsiCo’s distribution network.

Needham matched this sentiment by raising its price target to $70, reflecting the anticipated benefits from Alani’s transition and the inclusion of Rockstar. On the corporate front, Celsius announced the appointment of Rishi Daing as Chief Marketing Officer, alongside the creation of two new executive roles to strengthen its marketing leadership. These recent changes and strategic moves indicate a period of dynamic growth and restructuring for Celsius Holdings.

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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