Beverage company Celsius Holdings (CELH) is planning to reach more female consumers by buying the Alani Nu brand, which is popular with women. This helps give Celsius an edge to compete with male-focused energy drink brands like Monster (MNST) and Red Bull. As a result, Truist analyst Bill Chappell upgraded Celsius to a Buy rating and raised his price target to $45 after saying that the Alani Nu deal gives the company a strong new growth opportunity.
Interestingly, Celsius and Alani Nu now hold a combined 16% of the U.S. energy drink market, according to Nielsen. Although women make up less than 30% of the category, Chappell estimates that these two brands could represent close to half of all female customers. He also believes that the male energy drink market is slowing down, while the female segment could generate more than 110% of future category growth. This makes the $1.65 billion Alani Nu purchase look better as the brand grows and is sold in more stores.
As Celsius moves past its 2024 setbacks—such as inventory issues with PepsiCo (PEP)—and sees stronger distribution support from Pepsi, along with Alani Nu’s rapid growth, Chappell anticipates room for major stock upside. Indeed, Celsius shares have already climbed 33% in 2025, which includes a nearly 6% gain on Monday to a six-month high.
Is CELH Stock a Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on CELH stock based on nine Buys, five Holds, and one sale assigned in the past three months, as indicated by the graphic below. Furthermore, the average CELH price target of $35.46 per share implies 8.1% upside potential.
