Celsius Holdings, Inc. (CELH): A Bull Case Theory

We came across a bullish thesis on Celsius Holdings, Inc. on Global Equity Briefing’s Substack by Ray Myers. In this article, we will summarize the bulls’ thesis on CELH. Celsius Holdings, Inc.'s share was trading at $60.76 as of September 4^th. CELH’s trailing and forward P/E were 160.79 and 43.10, respectively according to Yahoo Finance.

Celsius Holdings (CELH) has executed a transformative strategic deal with PepsiCo that materially strengthens its position in the energy drink market. The agreement gives Pepsi responsibility for Alani Nu distribution across the U.S. and Canada, allowing Celsius to leverage Pepsi’s extensive logistics network and address gaps in convenience store coverage, a critical channel for energy drink sales. By securing the “category captain” role for energy drinks, Celsius gains strategic control over planograms, SKU prioritization, and promotion strategy, enabling optimized placement and marketing across its Celsius, Alani Nu, and newly acquired Rockstar brands.

This expanded partnership coincides with Celsius acquiring the U.S. and Canadian rights to Rockstar Energy from Pepsi for $585 million, a significant discount reflecting Pepsi’s mismanagement of the brand. Celsius plans to refocus Rockstar toward its original positioning in party, festival, and extreme sports segments, providing the potential to reclaim market share from Monster and Red Bull while unlocking synergies with its existing portfolio. As part of the transaction, Pepsi takes an 11% preferred equity stake in Celsius, ensuring alignment without a controlling interest, while offering fixed dividends and board representation.

The deal enhances Celsius’s scale, marketing power, and negotiating leverage with Pepsi, creating significant upside from operational improvements and brand revitalization. Combined with robust organic growth in Alani Nu and prior success integrating acquisitions, Celsius is now positioned for accelerated growth, expanded market penetration, and a strengthened competitive profile. The stock has already reacted positively, but the strategic implications suggest even greater long-term value creation, making Celsius a compelling opportunity for investors seeking exposure to a rapidly growing, category-leading energy drink company with multiple growth levers.

Previously we covered a bullish thesis on Celsius Holdings, Inc. (CELH) by One-Hovercraft-1935 in May 2025, highlighting strong brand equity, resilience amid distribution disruptions, and strategic acquisitions like Alani Nu. The stock has appreciated approximately 56% since then. The thesis still stands as Celsius executes strategic deals. Ray Myers shares a similar perspective but emphasizes the PepsiCo partnership, Alani Nu distribution, and Rockstar acquisition, highlighting additional upside from operational synergies and brand revitalization.

Celsius Holdings, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held CELH at the end of the first quarter which was 33 in the previous quarter. While we acknowledge the potential of CELH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.