Celsius Holdings and PepsiCo Collaboration: Celsius Holdings, Inc. and PepsiCo, Inc. have announced a strengthened long-term strategic partnership, which includes the integration of Celsius's Alani Nu brand into PepsiCo's distribution system in the U.S. and Canada.
Financial Investment: PepsiCo has invested $585 million in newly issued convertible 5% preferred stock in Celsius Holdings, while also extending its existing preferred stock to the same conversion period.
Acquisition of Rockstar Energy: Celsius Holdings has acquired the Rockstar Energy brand in the U.S. and Canada from PepsiCo, which will continue to manage the brand internationally.
Market Positioning and Growth Strategy
Celsius as Strategic Energy Lead: Celsius Holdings will take on the role of PepsiCo's strategic energy drink captain in the U.S., overseeing the CELSIUS, Alani Nu, and Rockstar Energy brands, while PepsiCo will handle distribution.
Targeting New Consumer Segments: The partnership aims to leverage Alani Nu's appeal to female consumers focused on fitness and lifestyle, enhancing retail availability across various channels in the U.S. and Canada.
Broader Portfolio Appeal: The addition of Rockstar Energy is expected to attract consumers who prefer traditional energy drink flavors, thereby expanding Celsius's market reach.
Leadership Insights
Statements from Executives: John Fieldly, CEO of Celsius Holdings, emphasized the importance of this partnership in shaping the future of modern energy drinks and enhancing brand growth through a unified distribution strategy.
PepsiCo's Vision: Ram Krishnan, CEO of PepsiCo Beverages U.S., highlighted the strategic alignment of both companies to create a robust multi-brand energy portfolio that caters to diverse consumer needs.
Financial and Legal Advisory
Advisory Teams: Celsius Holdings is advised by UBS Investment Bank and Goldman Sachs, while PepsiCo is supported by Centerview Partners and BofA Securities, among others, for this strategic transaction.
Future Engagement
Webcast Announcement: Celsius Holdings will host a webcast to discuss these developments with investors, providing further insights into the partnership and its implications for the company's future.
Company Backgrounds
Celsius Holdings Overview: Celsius Holdings is a functional beverage company known for its energy drink brand CELSIUS and health-focused products, aiming to innovate within the better-for-you beverage category.
PepsiCo Overview: PepsiCo operates globally, generating nearly $92 billion in net revenue in 2024, with a diverse portfolio of iconic brands and a commitment to sustainability through its pep+ initiative.
CELH
$43.15+Infinity%1D
Analyst Views on CELH
Wall Street analysts forecast CELH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CELH is 65.00 USD with a low forecast of 50.00 USD and a high forecast of 80.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
Wall Street analysts forecast CELH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CELH is 65.00 USD with a low forecast of 50.00 USD and a high forecast of 80.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Buy
1 Hold
1 Sell
Strong Buy
Current: 43.805
Low
50.00
Averages
65.00
High
80.00
Current: 43.805
Low
50.00
Averages
65.00
High
80.00
UBS
Peter Grom
Buy
downgrade
$73 -> $65
2025-11-07
Reason
UBS
Peter Grom
Price Target
$73 -> $65
2025-11-07
downgrade
Buy
Reason
UBS analyst Peter Grom lowered the firm's price target on Celsius to $65 from $73 and keeps a Buy rating on the shares. Celsius shares traded lower as Q3 results fell short of an elevated bar, the analyst tells investors in a research note. The firm views the move lower as overdone.
JPMorgan
Andrea Teixeira
Overweight
downgrade
$76 -> $68
2025-11-07
Reason
JPMorgan
Andrea Teixeira
Price Target
$76 -> $68
2025-11-07
downgrade
Overweight
Reason
JPMorgan analyst Andrea Teixeira lowered the firm's price target on Celsius to $68 from $76 and keeps an Overweight rating on the shares. The firm views the post Q3 selloff as providing an attractive entry point.
Morgan Stanley
Eric Serotta
Overweight
downgrade
$70 -> $64
2025-11-07
Reason
Morgan Stanley
Eric Serotta
Price Target
$70 -> $64
2025-11-07
downgrade
Overweight
Reason
Morgan Stanley analyst Eric Serotta lowered the firm's price target on Celsius to $64 from $70 and keeps an Overweight rating on the shares. The firm said the session's sell-off is overdone, as the company has robust category growth, solid brand Celsius retail sales growth, substantial runway for Alani in 1H26, continued EBITDA upside, and a paucity of growth in the consumer packaged goods group.
Deutsche Bank
Hold
downgrade
$59 -> $53
2025-11-07
Reason
Deutsche Bank
Price Target
$59 -> $53
2025-11-07
downgrade
Hold
Reason
Deutsche Bank lowered the firm's price target on Celsius Holdings to $53 from $59 and keeps a Hold rating on the shares. The company's Q3 report fell short of buy-side expectations, the analyst tells investors in a research note.
About CELH
Celsius Holdings, Inc. is engaged in the development, processing, marketing, sale, and distribution of functional energy drinks to a range of consumers. The Company's flagship asset, CELSIUS, is marketed as a lifestyle and energy drink. This product line comes in two versions: a ready-to-drink form and an on-the-go powder form. It also offers a new CELSIUS Essentials line, available in 16-ounce cans and a Hydration line of zero-sugar powders that are infused with electrolytes and are available in a variety of fruit-forward flavors. Celsius products are offered in retail channels across the United States, including conventional grocery, natural, convenience, fitness, mass market, vitamin specialty and e-commerce platforms. Its product's formulation includes ingredients and supplements such as green tea (EGCG), ginger (from the root), calcium, chromium, B vitamins and vitamin C. The Company's product portfolio also includes the health and wellness brand Alani Nu.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
