By Nate Wolf

Celsius Holdings got a jolt on Monday after analysts at TD Cowen upgraded the stock to Buy from Hold and lifted their price target to $55 a share from $37.

Shares of the energy drink maker jumped 6.8% to $43.97.

Celsius has been on a rollercoaster over the last year. The stock plummeted 78% between a record high on March 13, 2024, and Feb. 12, 2025, but has recovered swiftly in recent months, climbing 56% so far this year.

A strong energy drink market has helped. The category's 9.3% compound annual growth rate over the last four years has outstripped the food and beverage average by 3.5 percentage points, TD Cowen found. Meanwhile, the markup for energy drinks relative to soft drinks has declined, giving the category an advantage even if consumers' wallets are squeezed.

"We believe relative affordability is an important consideration for consumers in a weaker macroeconomic backdrop, and will further boost energy drink's 'share of throat' at the expense of other drink categories," the TD Cowen analysts wrote.

Celsius has solidified itself as the third-largest player in the space -- behind Red Bull and Monster Beverage -- and has more room to grow, the analysts argued. In particular, the company has "course-corrected" its core Celsius brand in recent quarters, adding new flavors and executing strong marketing campaigns. At an investor conference earlier this month, Celsius executives said the flagship brand gained 15% to 20% more shelf space during retailers' spring product resets.

The company's $1.8 billion acquisition in April of Alani Nutrition, the beverage and supplement company widely known as Alani Nu, also has TD Cowen feeling optimistic.

Despite worries that Alani Nu would cannibalize Celsius sales among women, the TD Cowen analysts have seen little overlap so far. And the group is confident Alani Nu can get on more shelves, particularly if Celsius switches the brand to its PepsiCo distribution network. In store checks at Costco and Sam's Club locations in New York and New Jersey, the group found that Celsius and Alani Nu had more combined shelf space than Red Bull or Monster individually.

"We recognize uncertainties about the Alani Nu brand longer-term, but the favorable price paid reduces the risk," the analysts wrote. "The Alani Nu brand transitions to CELH in strong condition."

Wall Street is largely bullish on Celsius stock. Of the 18 analysts to issue research notes on the company since the beginning of May, 14 have a Buy or equivalent rating and four rate the stock at a Hold, according to FactSet.

Monster Beverage rose 1.1% on Monday.

Write to Nate Wolf at nate.wolf@barrons.com

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June 16, 2025 11:17 ET (15:17 GMT)

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