Celsius Holdings: Accelerating Energy Drink Growth and EBITDA Upside Support Overweight Rating

Morgan Stanley analyst Eric Serotta maintained a Buy rating on Celsius Holdings yesterday and set a price target of $64.00.

Eric Serotta’s rating is based on the view that Celsius Holdings is delivering strong, accelerating growth across its energy drink portfolio, particularly through the Celsius and Alani brands. He highlights that total company energy drink sales have recently picked up momentum, with market share moving higher and brand Celsius itself showing improved year-over-year and two-year average growth trends. This performance is occurring within a robust energy drink category, which provides a supportive backdrop for continued expansion.

In addition, Serotta points to Alani’s particularly rapid growth, which has recently stepped up meaningfully and is expected to further benefit from broader distribution through the Pepsi system. New product initiatives, including the conversion of prior successful limited-time offerings into permanent items and the launch of new flavors, are seen as incremental drivers. Combining these growth dynamics with what he views as ongoing potential for EBITDA upside, Serotta concludes that the risk/reward remains attractive and thus maintains an Overweight (Buy) rating on Celsius Holdings.

According to TipRanks, Serotta is an analyst with an average return of -5.8% and a 52.63% success rate. Serotta covers the Consumer Defensive sector, focusing on stocks such as Celsius Holdings, Primo Brands, and Vita Coco Company.