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Celsius energy drinks, seen at a retail location in Crockett, California, have recently gained significant attention in the stock market.
On Monday, shares of Celsius Holdings rose sharply, reaching levels that have not been observed since early September, driven by positive analyst sentiment regarding the company’s appeal to female consumers. The stock surged nearly 6%, marking an overall increase of more than 35% for the year 2025.
This uptick followed an upgrade from Truist analyst Bill Chappell, who revised his rating on Celsius from hold to buy and increased the price target by $10 to $45. Chappell’s revised target suggests a potential increase of over 33% from the previous week’s closing price.
The analyst’s decision to upgrade was influenced by Celsius’ recent announcement to acquire the Alani Nu brand for $1.65 billion, a transaction he sees as pivotal for the company’s long-term strategy. Chappell believes that this acquisition will help mitigate challenges that Celsius might encounter in 2024 and early 2025.
Despite a 6% decline in sales over the previous months, primarily attributed to Alani Nu’s impact on Celsius’ performance, Chappell expressed optimism that the acquisition will resolve those challenges. The two brands together hold a 16% market share in the U.S. energy drink sector, with a significant concentration of their customer base among women, a demographic that Chappell highlights as pivotal to future market growth.
As the market landscape evolves, Chappell emphasized that while the male demographic has traditionally dominated the energy drink category, women are anticipated to drive over 110% of the category’s growth moving forward. Currently, women contribute to less than 30% of energy drink sales, yet this segment is projected to expand significantly.
Chappell also noted ongoing competitive pressures from major players like Monster and Red Bull, which continue to engage in promotional strategies. However, he posited that these tactics may have diminished effectiveness when targeting female customers, as these brands have historically oriented their marketing toward male consumers.
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