Bitcoin price today: gains to $120k, near record high on U.S. regulatory cheer
Stifel resumed coverage of Celsius Holdings (NASDAQ:CELH) on Thursday with a buy rating and a $47.00 price target, citing expectations for improving sales growth for the energy drink maker. The company, currently valued at $10.8 billion, has demonstrated strong financial health with an impressive InvestingPro Overall Score of 3.22 ("GREAT"), supported by robust cash flow and growth metrics.
The research firm expects the Celsius brand to benefit from improving velocities and distribution growth as innovation and marketing initiatives take hold. Stifel also highlighted the recent Alani Nu acquisition as providing greater scale and a portfolio of leading brands in the functional segment, with profit growth expected to benefit from deal synergies in 2026. This aligns with InvestingPro data showing the company maintains a healthy current ratio of 3.38 and holds more cash than debt on its balance sheet, positioning it well for expansion.
Despite recently volatile sales trends, the Celsius brand has maintained approximately 10.5% share of the U.S. energy drink market for the past 30 weeks, according to Stifel. With the Alani Nu acquisition closing, Celsius Holdings now represents over 16% of the U.S. energy drink category. The company’s market position is supported by strong fundamentals, including a 50.4% gross profit margin and positive earnings expectations for the current year, according to InvestingPro analysis, which offers 15+ additional insights about CELH’s growth potential.
Stifel projects Celsius brand sales will accelerate in the second half of 2025, driven by modest distribution expansion and improving sales velocities with easier year-over-year comparisons. The firm expects slightly positive year-over-year sales growth in the second quarter of 2025.
U.S. sales and market share trends are viewed as key drivers for Celsius Holdings’ share prices, with recent category acceleration and easier year-over-year comparisons in coming weeks expected to improve Celsius trends through the second half of 2025.
In other recent news, Celsius Holdings reported a notable acquisition of Alani Nu for $1 billion, finalized on April 1, which aligns with the company’s strategic plans to enhance its market presence. Analysts from Truist Securities, Piper Sandler, and Jefferies have raised their price targets for Celsius Holdings, reflecting optimism about the company’s growth trajectory and the potential synergies from the acquisition. Truist Securities set their target at $50, while Piper Sandler and Jefferies both adjusted their targets to $45, maintaining a positive outlook on the stock.
Piper Sandler cited strong retail sales growth for Alani Nu and stable trends in Celsius’s core brand, even as tariffs impact gross margins. Jefferies highlighted the expected synergies from the Alani Nu deal, projected at $50 million, as a significant contributor to revenue. In contrast, TD Cowen maintained a Hold rating with a $37 target, citing a neutral outlook based on current market evaluations.
Additionally, Celsius Holdings has expanded its stock incentives and increased authorized shares following its Annual Meeting of Stockholders. These developments include the approval of two new stock plans and an increase in authorized common stock from 300 million to 400 million shares. These actions are part of the company’s strategy to incentivize and retain talent through stock-based compensation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.