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Investing.com -- TD Cowen upgraded Celsius Holdings (NASDAQ:CELH) to Buy and raised its price target to $55 in a note to clients on Monday, citing renewed brand momentum, a smooth Alani Nu integration, and the potential for further distribution gains in 2026 and beyond.
“We believe the stock will continue to trade higher this year,” analysts wrote in a note, adding that recent trends indicate the Celsius brand will “return to growth.”
TD Cowen said Celsius’ scanner sales have improved “to ~flat from the -HSD% sales decline seen in February.”
The firm expects this momentum to continue through the summer as comparable sales figures ease.
“We believe management has course-corrected execution on the Celsius brand,” the analysts said, pointing to strong new product innovation and expanded marketing efforts like the “Live.Fit.Go” campaign.
Additionally, the firm noted Celsius gained “15-20% more shelf space during spring resets,” which, alongside a rebound in the energy drink category, has created a more favourable environment for growth.
On Alani Nu, TD Cowen stated that the brand “transitions to CELH in strong condition,” with scanner sales up over 100%.
They note that the brand’s female-skewed audience has not overlapped significantly with Celsius’ customer base, with household panel data showing just 14% overlap.
“The favorable price paid reduces the risk,” TD Cowen added.
The firm also sees upside from potential distribution changes: “TDPs could increase another 30% under PepsiCo (NASDAQ:PEP) in short order,” analysts wrote, noting that Celsius saw 60% TDP expansion within six months of joining PepsiCo’s system.