Celsius Gains Early as Stock Named Top Pick (NASDAQ:CELH)

Celsius Holdings stock price (NASDAQ:CELH) has increased by 1.15% in pre-market trading to $49.25, after being designated as Needham's Top Pick for 2026. The positive sentiment follows analyst Gerald Pascarelli's assessment of the company's strong position within the energy drink sector.

Needham's “Buy” rating and $70 price target reflect confidence in Celsius's potential, particularly as the Alani Nu distribution transition nears completion. Pascarelli anticipates that this development will unlock incremental distribution opportunities throughout the year, with the potential upside seen as ~40% from the current price action.

This endorsement aligns with a broader trend of positive analyst adjustments. TD Cowen recently raised its price target to $30 from $29, maintaining a “Hold” rating after Celsius's fourth-quarter earnings surpassed expectations and the company announced its $1.8 billion acquisition of Alani Nu. The acquisition is expected to solidify Celsius's position as a significant player in the energy drink market, projecting a combined market share of approximately 16%.

JPMorgan reiterated an “Overweight” rating with a $31 price target following the Alani Nu acquisition, highlighting the inclusion of $150 million in tax assets, which effectively reduces the net purchase price to $1.65 billion. Alani Nu's 2024 revenue was reported at $595 million with an EBITDA of $87 million, and Celsius anticipates $50 million in run-rate cost synergies within two years post-acquisition.

Strong Financial Performance

Celsius's financial performance in the third quarter of 2025 demonstrated significant growth, with revenue reaching $725.1 million, a 173% increase compared to the same period the previous year. This growth was fueled by the acquisitions of Alani Nu and Rockstar Energy, alongside the continued expansion of the CELSIUS brand. Alani Nu achieved record sales of $332 million during the quarter, driven by successful limited-time-offer innovations and organic growth across its core flavors.

Celsius's strong financial position was further underscored by the announcement of a $300 million share repurchase authorization on November 10, 2025. This move reflects the company's robust balance sheet and cash generation capabilities, which allows for share repurchases while continuing to invest in growth initiatives across its functional beverages portfolio.

Despite these positive developments, Celsius faces ongoing challenges. A securities class-action lawsuit filed in January 2025 alleges that the company misled investors regarding its operations and future prospects. The complaint asserts that Celsius failed to disclose issues such as excessive inventory shipped to PepsiCo beyond actual consumer demand, and projected declines in sales as PepsiCo worked through the overstock.

These legal challenges, combined with broader concerns about the energy drink market's growth trajectory, have contributed to mixed sentiment among investors. Some analysts have cautioned that the energy drink category may be approaching maturity, with anticipated low to mid-single-digit annual growth in the coming years.