Celsius shares can rally more than 30% as growth story is 'heating back up,' TD Cowen says in upgrade
Celsius' growth story is back, according to TD Cowen, on the strength of its position in women's energy drinks. Analyst Robert Moskow upgraded Celsius to buy from hold, and raised his price target, saying that an improvement in sales and a creative new direction from management has reinvigorated the energy drink company. His price target, hiked to $55 from $37, implies more than 30% upside from Friday's close of $41.16. The stock was last up more than 3% in extended trading. "We upgrade CELH to Buy and raise our PT to $55," Moskow wrote Monday in a note called "Celsius' growth story is heading back up.' "We believe the stock will continue to trade higher this year as the Celsius brand returns to growth, the Alani Nu integration progresses smoothly, and investors look ahead to distribution expansion in 2026 and beyond." "We recognize uncertainties about the Alani Nu brand longer-term," he added. "But the favorable price paid reduces the risk." CELH 1D mountain Celsius Holdings, over one day Celsius shares have surged this year, rallying more than 56%. That comes after the stock's disappointing performance in 2024 when it plunged more than 50% as Wall Street firms including TD Cowen worried the energy drink company had lost its momentum. Since then, however, an improvement in sales that's expected to continue through the summer, as well as new innovative products within the Celsius brand, have helped strengthen the brand. Celsius' acquisition of health and wellness brand Alani Nu can also help it build on its position as the No. 3 brand in the U.S. energy drink category, the analyst said. "We believe management has course-corrected execution on the Celsius brand with strong innovation (Retro Vibe, Playa Vibe, Strawberry Passionfruit), nationwide expansions for last year's retail exclusives (Watermelon Lemonade, Cherry Cola), and marketing efforts like the recent "Live.Fit.Go" campaign to expand the appeal of the brand beyond its core fitnessfocused audience," the analyst wrote. TD Cowen is not the only firm to grow bullish on Celsius in recent months. In March, Truist analyst Bill Chappell upgraded the stock to buy from hold, and hiked his price target, saying the Alani Nu acquisition can help Celsius "corner" the women's market . On Feb. 21, Celsius shares popped 25% on strong quarterly earnings results, as well as acquiring health and wellness company Alani Nu.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
3 days ago
- Yahoo
Celsius Holdings (CELH) Upgraded by TD Cowen; Sees 30% Distribution Boost Ahead
Celsius Holdings (CELH, Financials) was upgraded to Buy by TD Cowen on Monday, with analysts raising their price target to $55 and projecting a 30% increase in distribution points under PepsiCo (PEP, Financials). They expect the stock to keep climbing this year as momentum builds across product lines. Warning! GuruFocus has detected 4 Warning Signs with NVDA. In the note, TD Cowen said Celsius has turned the corner; scanner sales have improved from earlier declines, helped by fresh product launches and the marketing campaign. Shelf space has grown 15%20% following spring resets; further gains are expected through PepsiCo's network, which helped Celsius expand TDPs by 60% within six months of onboarding. The Alani Nu integration is also shaping up well; sales have more than doubled, and the customer base overlaps only modestly with Celsiusjust 14%, according to household data. Analysts said the low overlap limits cannibalization and creates new growth opportunities; the price paid was attractive, further limiting downside risk. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
3 days ago
- Yahoo
5 Must-Read Analyst Questions From Celsius's Q1 Earnings Call
Celsius' first quarter results drew a positive market reaction despite falling short of Wall Street's top- and bottom-line expectations. Management attributed the revenue decline primarily to slower product velocity, shifts in the timing and structure of distributor incentives, and increased retail promotional activity. CEO John Fieldly highlighted that the company was facing difficult comparisons to the prior year, which included the nationwide launch of CELSIUS ESSENTIALS and elevated retail promotions. Fieldly noted, 'We saw business fundamentals strengthen through the quarter and are encouraged by the positive momentum heading into Q2.' Is now the time to buy CELH? Find out in our full research report (it's free). Revenue: $329.3 million vs analyst estimates of $342.3 million (7.4% year-on-year decline, 3.8% miss) Adjusted EPS: $0.18 vs analyst expectations of $0.19 (5.9% miss) Adjusted EBITDA: $69.69 million vs analyst estimates of $72.12 million (21.2% margin, 3.4% miss) Operating Margin: 15.8%, down from 23.4% in the same quarter last year Market Capitalization: $11.38 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Kaumil Gajrawala (Jefferies) asked about the continued strength of the energy drink category and drivers behind velocity. CEO John Fieldly described health and wellness trends and category innovation as key factors. Peter Grom (UBS) inquired about the drivers of first quarter sales decline in North America. Fieldly and CFO Jarrod Langhans explained that slower velocity, distributor incentives, and promotional timing were the primary contributors. Kevin Grundy (BNP Paribas) questioned Celsius' pricing strategy amid mixed industry dynamics. Fieldly said the company took price in Q4 but remains cautious about further increases due to shifting consumer purchase behaviors. Jon Andersen (William Blair) asked for details on shelf space expansion and the impact for both Celsius and Alani Nu. Fieldly cited gains in secondary placements and excitement about Alani Nu's distribution momentum, particularly among female consumers. Andrea Teixeira (JPMorgan) sought clarification on Costco performance and the impact of allowances and destocking. Langhans stated that scanner data for Costco was up, with timing and promotional allowances impacting reported revenue, but no major destocking was observed. In the coming quarters, our analysts will closely track (1) the integration progress and performance of Alani Nu within Celsius' broader portfolio, (2) the effectiveness of new marketing campaigns and their impact on product velocity, and (3) ongoing shelf space expansion efforts, including secondary placements and foodservice channel growth. The trajectory of gross margins and adaptability to potential cost pressures will also be key indicators of future execution. Celsius currently trades at $44.44, up from $33.95 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Los Angeles Times
4 days ago
- Los Angeles Times
A forest the size of North America would be needed to offset Big Oil's reserves, study finds
The world would need to plant a forest the size of North America in order to offset planet-warming emissions from the 200 largest oil and gas companies, new research has found. A study published Thursday in the journal Communications Earth & Environment analyzed the economic and ecological benefits of planting trees as a means of balancing potential carbon dioxide emissions from the projected burning of oil reserves held by the fossil fuel industry. Many experts consider planting trees to be one of the best means of balancing CO2 because the plants absorb and store carbon that otherwise would enter the atmosphere and heat the planet. But researchers in England and France found that the tree-planting process, known as afforestation, faces insurmountable land use and financial challenges. 'We have to be careful as a society to think that we can continue to burn fossil fuels and emit CO2 in a sort of business-as-usual scenario and just offset it later,' said Nina Friggens, a research fellow in plant soil ecology at the University of Exeter and one of the study's authors. 'The picture on that is increasingly looking very unviable.' The world's 200 largest fossil-fuel companies hold about 200 billion tons of carbon in their reserves, which would generate as much as 742 billion tons of CO2 if burned, according to the study. That's far more than the budget required to limit global warming to 2.7 degrees Fahrenheit, or 1.5 degrees Celsius — an internationally agreed-upon target intended to prevent the worst effects of climate change. The burning of fossil fuels represents about 90% of planet-warming emissions. Most experts and governments agree that rapid action is needed, including a combination of offsetting emissions and reducing them altogether. But, as the paper notes, 'fossil-fuel companies currently face little incentive to reduce the extraction and use of fossil fuels, and regulatory measures to limit these activities have been slow to materialise.' The researchers set out to calculate how much land area of afforestation would be needed to compensate for these emissions by 2050. The number they came up with was 9.5 million square miles of new trees — more land area than North America and part of South America. 'That would displace all infrastructure, agriculture and preexisting habitats,' Friggens said. 'It's not something that we are at all suggesting that we do — it's just to illustrate the size of the problem.' The economic viability of such a project for oil and gas companies is even less realistic. Most estimates suggest that afforestation is the 'cheapest' means of offsetting carbon emissions — the international Organization for Economic Cooperation and Development estimates it will cost more than $14 per ton of carbon offset. At that rate, afforestation offsets would cost the 200 largest fossil fuel companies around $10.8 trillion — or roughly 11% of global GDP, according to the study. By comparison, the price of direct air capture — a newer field of technology that draws CO2 from the air and stores it underground or in industrial products — would be about $910 per ton, costing the companies $673.7 trillion, or about 700% of global GDP, according to the study. That said, even the more affordable afforestation approach would cause nearly all fossil fuel companies to lose value, according to the researchers — they referred to this as 'negative net environmental valuation.' The companies 'would be worth less than what they would have to pay for their offsetting,' said Alain Naef, an assistant professor of environmental economics at the ESSEC Business School in Paris and another of the study's authors. The researchers acknowledged that the study has limitations as it relies on broad assumptions, including that all existing fossil fuel reserves will be sold and burned. In addition, by focusing on afforestation, it does not account for other approaches that are central to tackling climate change, such as preventing deforestation and restoring existing forests. Still, the findings come as the world moves further from its climate goals. Last year was Earth's hottest on record with a global average surface temperature about 1.46 degrees Celsius above the preindustrial baseline — closer than ever to the 1.5 degree threshold. What's more, the Trump administration has shifted the United States away from decarbonization efforts, including canceling funding for dozens of decarbonization projects in recent weeks and ramping up efforts to increase oil and gas production. President Trump in January also withdrew the U.S. from the Paris climate agreement, the treaty signed by about 200 nations from which the 1.5 degree Celsius goal stems. The researchers said their findings should not suggest afforestation and carbon offsetting are futile. 'It can work — it can have valuable climate benefits, cultural benefits, social benefits, biodiversity benefits,' Friggens said. Naef said carbon offsetting remains an important tool but cannot be used to compensate for all emissions. 'While offsetting can be useful at the margin, the key change will not be offsetting — it will be a reduction of carbon emissions,' he said. The main message from the paper, he added, is that 'oil and gas should remain in the ground.'
