Celsius Leverages Alani Nu And Zero-Sugar Trends To Capture New Market Share

Celsius Holdings, Inc. (NASDAQ:CELH) shares are trading higher on Friday.

On Thursday, the company reported second-quarter adjusted earnings per share of 47 cents, beating the analyst consensus estimate of 23 cents. Quarterly sales of $739.259 million (+84% year over year) outpaced the Street view of $633.582 million.

The sales increase was primarily driven by $301.2 million of revenue from the Alani Nu brand, acquired on April 1.

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Needham analyst Gerald Pascarelli reiterated the Buy rating on the stock, raising the price forecast from $55 to $60.

Pascarelli noted that after a standout quarter and simultaneous market share gains in both its core offerings and the Alani brand, Celsius remains a ‘Conviction List Pick’, leading to a price target increase to $60.

He highlighted that the favorable U.S. energy drink environment, supported by ongoing innovation, new limited-time offerings, and inevitable shelf-space gains, should drive accelerating revenue through 2026.

As Alani scales and integrates further into the business, combined with acquisition synergies set to impact operating expense next year, the consolidated cost structure and margin profile are poised to improve. Consequently, Pascarelli raised estimates, expecting these dynamics to translate into meaningful EBITDA upside.

Pascarelli said that as the No. 3 energy player, Celsius should see revenue “re-accelerate” on a healthier category, a shift toward zero-sugar products, easier year-ago comparisons and the removal of previous inventory headwinds.

Pascarelli said that while Celsius could achieve a consolidated gross margin above 52% this year with operating expenses at the low end of the 32–34% guidance, the analyst is conservatively discounting gross margins by about 100 basis points to 51.5% and forecasting opex at 33.1% amid a volatile backdrop and rising Midwest Premium.

The analyst added that these cautious assumptions should leave room for upside to EBITDA if no unforeseen headwinds arise.

Price Action: CELH shares are trading higher by 2.08% to $51.16 at last check Friday.

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