Deutsche Bank downgraded its rating on Celsius Holdings to Hold from Buy, citing mounting fundamental challenges and a delayed recovery outlook.
The bank raised its price target to $35 from $30, though the stock was trading at $35.23 at the time of publication. The downgrade follows a nearly 40% decline in the prior month and a subsequent 30% rally, which analysts attributed largely to investor optimism over potential operational or strategic changes rather than evidence of a durable brand rebound.
Celsius’s year-over-year performance showed a 12% decline, with a 7-percentage-point impact from inventory rebalancing at a major retailer, likely Walmart. Analyst Steve Powers noted that core trends weakened through the second quarter of 2026 and that revenue and profitability had missed expectations. Management has pushed back its recovery timeline to calendar 2027.
Peer adjustments reflected similar caution. Stephens lowered its price target to $50 from $65 but maintained an Overweight rating, while Bernstein downgraded Celsius to Market Perform from Outperform, citing concerns over brand momentum and category growth. Piper Sandler reiterated an Overweight rating with a $36 price target, though it highlighted that shelf resets at a major retailer did not translate into expected retail momentum.
Goldman Sachs cited NielsenIQ data showing modest growth in U.S. consumer staples sales, with Pet Care and Health & Beauty Care leading. Bank of America separately noted that aluminum cans continued gaining market share in beverage packaging, a trend that may not directly benefit Celsius given its focus on energy drinks.
InvestingPro’s fair value estimate for Celsius stood at $43.18, based on 14 exclusive tips covering 1,400+ U.S. equities.
