Celsius Holdings is set for additional gains as its core and acquired beverage lines strengthen across markets, according to Morgan Stanley.
The investment bank upgraded the energy drink maker to overweight from equal weight, citing expectations for renewed topline growth momentum.
Alongside the upgrade, Morgan Stanley raised its price target on the stock to $70 from $61 per share, implying a potential upside of 23% from Monday’s close.
“We see another leg up in CELH driven by a greater than expected reacceleration in topline growth with Alani’s transition to PEP and improving Celsius growth,” analyst Eric Serotta wrote in a note to clients on Tuesday.
Celsius shares responded positively to the move, trading 4% higher in premarket activity.
The stock has delivered a strong performance in 2025, rallying 116% year to date and over 81% across the past 12 months.
Core line returns to growth
Celsius’ original energy drink line, which faced a sharp slowdown last year, has returned to growth in recent months.
Serotta noted that this recovery should continue, aided by easier year-over-year comparisons beginning in December and lasting through June.
The analyst said further improvements are expected as the company builds on this rebound, reinforcing investor confidence that the slowdown was temporary.
Stronger sales from the original line provide a more stable foundation for Celsius’ overall business performance, complementing contributions from its newly acquired brand.
Alani Nu positioned for acceleration
Earlier this year, Celsius acquired the Alani Nu beverage line for nearly $2 billion.
While the brand’s sales cooled after delivering “outsized” results in the second quarter, Morgan Stanley expects a fresh wave of momentum.
According to Serotta, Alani Nu is positioned to accelerate as it transitions into PepsiCo’s distribution system (PEP).
The move is likely to expand its market reach and drive stronger growth in the months ahead.
The acquisition has broadened Celsius’ product portfolio, enabling the company to participate more fully in the competitive energy and wellness beverage sector.
Despite short-term softness in sales, the transition to PEP is seen as a key catalyst that could unlock sustained demand for Alani Nu.
Market tailwinds and analyst consensus
Both Celsius’ core and Alani Nu beverage lines may also benefit from external factors in the market.
In particular, Morgan Stanley highlighted pricing increases by rival Monster Beverage as a potential driver of additional demand for Celsius products.
Competitive pricing dynamics could give Celsius and its newer brand a relative edge in attracting consumers seeking alternatives.
The upgrade aligns Morgan Stanley with the broader analyst community. Of the 23 Wall Street firms covering Celsius, 17 currently rate the stock as a buy or strong buy, according to LSEG data.
This consensus reflects confidence in the company’s growth trajectory, despite past volatility in its sales performance.
As investors digest the latest upgrade and price target hike, Celsius continues to ride significant momentum in 2025.
With strong year-to-date gains, a revitalized core line, and anticipated benefits from the Alani Nu integration, the company is drawing favorable attention from Wall Street.
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