Bank of America analysts have upgraded Celsius Holdings (NASDAQ:CELH) shares to ‘Buy’ from ‘Underperform,’ citing strong fourth quarter results and positive trends presented at the recent CAGNY conference.
The firm also raised its price objective to $65 from $45, implying upside from current levels of about $53.
The analysts described the earnings and conference updates as upbeat, noting that the core Celsius brand in North America is expected to see shelf space gains of 17% in 2026.
They added that Alani Nu, another brand in Celsius’ portfolio, contributed to results that were "well ahead of expectations" and is showing solid momentum heading into 2026.
Bank of America also raised its full-year 2026 adjusted EBITDA estimate for Celsius to $815.9 million from $746 million. The analysts wrote that the increase "primarily reflects stronger Alani Nu topline trends, with recent scanner data continuing to track ahead of our prior assumptions."
Gross margin for the year is expected to remain in the low‑50s, with a modeled 50.6% for fiscal 2026.
The analysts emphasized that their prior 'Underperform' rating was mainly valuation-driven and due to "noise in H2 comps for Core Celsius NA rather than views on the brand/consumption trends or the energy category growth prospects."
They highlighted that non-alcoholic beverages remain their preferred sector within Consumer Staples, noting positive views on the energy category alongside other top picks such as Coca-Cola and Monster Beverage.
Downside risks to the upgrade, the report noted, include ongoing inventory fluctuations between Alani Nu and the core Celsius brand in North America.
However, the analysts wrote that "as long as consumption stays healthy, we think investors largely look through this as it should even out over time."