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

We came across a bullish thesis on Celsius Holdings, Inc. on Bullseye Investing’s Substack. In this article, we will summarize the bulls’ thesis on CELH. Celsius Holdings, Inc.'s share was trading at $60.70 as of October 10th. CELH’s trailing and forward P/E were 155.00 and 39.84 respectively according to Yahoo Finance.

Celsius Holdings (CELH) has experienced an extraordinary growth trajectory over the past six months, with its share price more than doubling, reflecting a 131% increase and rewarding early investors handsomely. The company is a leading player in the U.S. energy drink market, with its products widely available across gas stations and vending machines, while international expansion is beginning to take hold. The recent acquisition of Alani Nu has further strengthened its product portfolio and revenue base, positioning Celsius for continued growth.

In Q2 2025, Celsius delivered a remarkable earnings beat, posting $0.47 per share against an estimate of $0.24, while revenue surged from $329 million in Q1 to $739 million, effectively more than doubling in a single quarter. This exceptional performance drove a 20% gain in the stock price immediately following the earnings announcement. Despite this impressive growth, the stock’s previous valuation had already priced in substantial upside, trading at over 120 P/E, limiting immediate share price reaction.

Looking ahead, Celsius offers an attractive risk/reward proposition. Continued revenue growth could justify a lower P/E multiple of around 20, suggesting significant potential upside from the current $51 share price, with a price target of $60. While the company carries some valuation and return-on-capital risks, its strong brand loyalty, durable growth trajectory, and expanding product footprint make it a compelling investment.

Investors may consider initiating positions opportunistically, particularly if the stock pulls back below $50, offering an attractive entry point into a high-growth consumer brand with proven execution and momentum. Celsius Holdings thus represents a rare combination of rapid growth, broad market presence, and meaningful upside potential.

Previously we covered a bullish thesis on Celsius Holdings, Inc. (CELH) by One-Hovercraft-1935 in May 2025, which highlighted the company’s strong brand, resilience amid distribution issues, and growth via acquisitions like Alani Nu. The stock has appreciated approximately 56% since then as the thesis played out. Bullseye Investing shares a similar perspective but emphasizes CELH’s recent extraordinary revenue and earnings growth, underlining its compelling risk/reward potential.

Celsius Holdings, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held CELH at the end of the second quarter which was 47 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.