Why Celsius (CELH) Stock Is Trading Up Today

What Happened?

Shares of energy drink company Celsius (NASDAQ:CELH) jumped 3.3% in the afternoon session after brokerages Stephens and Truist Securities raised their price targets on the stock following the company's strong quarterly results. Stephens and Truist Securities both hiked their price target on the energy drink maker to $65 from $55, with Truist analyst Bill Chappell maintaining a "Buy" rating on the stock. This wave of analyst optimism comes on the heels of the company's strong quarterly results reported last week, which revealed continued market share gains and growing demand. During its second quarter, Celsius's revenue soared by 84%, a performance largely fueled by the acquisition of the Alani Nu brand.

After the initial pop the shares cooled down to $54.02, up 4% from previous close.

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What Is The Market Telling Us

Celsius’s shares are extremely volatile and have had 34 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 19 days ago when the stock gained 3.1% on the news that Citigroup initiated coverage on the energy drink maker with a "Buy" rating and a $55 price target. The investment bank's positive outlook was based on strong momentum in the U.S. energy drink market and significant long-term opportunities for international growth. Citi's analysts noted that Celsius is well-positioned to accelerate sales in 2025, aided by its core brand and the recent acquisition of Alani Nu. Citi highlighted that Celsius has substantial room for growth in its distribution network, as its presence remained significantly below that of competitors like Monster and Red Bull. Currently, only 5% of Celsius's revenue came from outside the U.S., which suggested a large untapped market for global expansion. The firm's price target of $55 represented a potential upside of over 24% from the stock's previous closing price.

Celsius is up 98.6% since the beginning of the year, and at $54.02 per share, has set a new 52-week high. Investors who bought $1,000 worth of Celsius’s shares 5 years ago would now be looking at an investment worth $8,164.

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