Bank of America has upgraded Celsius Holdings Inc. by two notches to Buy from Underperform and increased its price objective to $65, up from $45. The brokerage attributed the change to a firmer-than-anticipated fourth quarter and what it sees as improving growth prospects for 2026.
The new target is calculated using 20.5 times BofA's 2027 EV to EBITDA estimate, a rise from the prior 15 times multiple. That shift brings Celsius' implied valuation closer to that of its non-alcoholic beverage peers, according to the bank.
BofA pointed to Alani Nu as the primary driver of the stronger quarterly showing, noting the brand outperformed expectations as it moved into distribution through PepsiCo. The bank said the transition into PepsiCo's system should create solid momentum into 2026.
For the core Celsius brand in North America, management disclosed plans for a 17% increase in shelf space for 2026 at the CAGNY conference. BofA said the additional distribution should underpin consumption growth, even though inventory movements in the second half of 2025 may produce near-term comparison noise.
The brokerage raised its 2026 adjusted EBITDA estimate to $815.9 million from $746.0 million, reflecting stronger sales trends for Alani Nu. BofA continues to model a 2026 gross margin of 50.6%, which it described as within management's "low-50s" target range and based on an assumption of sequential improvement through the year.
BofA emphasized that its prior Underperform rating was driven more by valuation concerns and temporary comparison pressures than by doubts about the Celsius brand or the broader energy drink category. The firm reiterated its preference for the non-alcoholic beverages area within consumer staples and maintained a constructive view of the energy segment.
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