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Celsius (CELH) was upgraded by Truist to Buy from Hold, with its target price raised to $45 from $35. Trust cites Celsius's strong positioning in the US women's energy drink market.
Market Domination host Josh Lipton and Wall Street Horizon head of corporate event research Christine Short discuss the details.
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Celsius is getting a lift at Truist from upgrading that stock from hold to buy and raising its target to 45. Christine. So basically this one comes down saying it's Alani Nu acquisition, Christine. Gives it an extremely strong position in the women's segment of the US energy drink category. The analyst says it sounds like some actual concerns about the broad energy drink sector, but does continue to believe for example, the male segment continues to stagnate and not decline in the US. But it's the female segment generated generating 110% plus of the category growth going forward. They take this one to buy.
I know, interesting because um frankly hadn't heard of Alani Nu. Um
Makes two of us.
But I I did see Celsius last quarter wasn't so hot. This, you know, sales dipped about 6%. Some of that was due to competition from, like you said, some of those more male dominated energy drinks like Monster or Red Bull. Um but they have about a 16% market share of this female energy drink market. Um so I'm curious where this one goes because like you said overall, it seems like the energy drink market was taking a bit of a dip. I don't know if there's like some health benefit, usually that the probiotics um tend to help some of these names. But um interesting to see from from hold to buy.
Analyst consensus contemplates 25% growth for Alani Nu in 25. We believe they told their clients the full year growth rate could be at least 40%. So buy, target 45.