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On Monday, Truist Securities revised its stance on Celsius Holdings (NASDAQ: NASDAQ:CELH), upgrading the stock rating from Hold to Buy and increasing the 12-month price target from $35.00 to $45.00. Currently trading at $33.65, with analyst targets ranging from $26 to $58, the stock appears undervalued according to InvestingPro analysis. The move reflects the firm’s renewed confidence in the company’s growth prospects following its acquisition of Alani Nu, a strategic addition that Truist believes will strengthen Celsius’s position in the women’s energy drink segment in the United States.
The upgrade comes as Truist Securities acknowledges the market’s shift in focus towards the long-term benefits of the Alani Nu acquisition, despite the recent slowdown in Celsius’s legacy business and its performance in the first quarter of 2025. With a "GREAT" financial health score and strong balance sheet metrics from InvestingPro, including a current ratio of 3.62 and minimal debt, Truist Securities suggests that the market is looking beyond the temporary challenges faced by Celsius and is recognizing the potential upside from the acquisition.
According to Truist Securities, the decision to upgrade the stock and raise the price target is based on the belief that the Alani Nu acquisition has provided Celsius with a significantly stronger foothold in the targeted demographic. This strategic move is expected to bolster the company’s market share and drive future growth.
The analyst at Truist Securities stated, "We are raising our rating on CELH to Buy from Hold and our 12-month price target to $45 from $35. In our opinion, the market is already looking past the hiccups of the legacy business in 2024 and the brand’s slowdown in 1Q25. Instead, it is starting to focus on the long-term benefits of the Alani Nu acquisition, which in our opinion provides the company with an extremely strong position in the women’s segment of the US energy drink category. Our recommendation is based on the following."
Celsius Holdings has not yet released a public statement regarding the upgraded rating and revised price target. With analysts forecasting 22% revenue growth and net income growth for the current year, the company’s stock performance following this announcement will be closely watched by investors and market analysts alike. For deeper insights into Celsius Holdings’ valuation and growth prospects, including exclusive ProTips and comprehensive financial analysis, investors can access the detailed Pro Research Report available on InvestingPro.
In other recent news, Celsius Holdings announced the anticipated acquisition of Alani Nutrition, with the transaction expected to close in April 2025, following the expiration of a key antitrust waiting period. This acquisition involves Celsius purchasing all membership interests in Alani Nu, subject to standard closing conditions. Additionally, Needham analysts raised their price target for Celsius Holdings to $40, maintaining a Buy rating, citing the Alani Nu acquisition as a positive development likely to enhance earnings and market position. Meanwhile, Morgan Stanley (NYSE:MS) reiterated an Equalweight rating on Celsius Holdings with a $42 price target, noting slight improvements in recent sales data but expressing caution about ongoing weak retail sales. In leadership news, Celsius appointed Eric Hanson as President and COO, effective March 24, 2025, as part of a strategic leadership restructuring. Hanson brings extensive industry experience from his previous roles at PepsiCo (NASDAQ:PEP), where he managed significant brand portfolios. This leadership change is aligned with Celsius’s broader strategy to expand its market presence and integrate acquisitions. These developments reflect Celsius Holdings’ ongoing efforts to strengthen its position in the functional beverage market.
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