Piper Sandler has increased its price target for Celsius Holdings (CELH) to $65.00 from $61.00 while continuing to carry an Overweight rating on the energy drink maker's stock. The updated target now aligns closely with InvestingPro's Fair Value measure, which indicates the stock may be trading below fair value relative to its recent market price of $53.91.
The research note highlights potential upside to consensus forecasts for fourth-quarter 2025, suggesting that current buy-side and consensus sales estimates look reasonable and could prove modestly conservative if competitor Alani Nu completes its transition smoothly. Piper Sandler left its own numeric estimates for Celsius unchanged, but the firm acknowledged that its characterization of 2026 sales as conservative likely understates possible gains - notably those that could stem from retailers resetting spring shelf assortments.
In a methodological shift, Piper Sandler based the new price target on roughly 5.0x estimated enterprise value-to-sales for calendar 2027, departing from its earlier approach that used 2026 estimates for valuation. The note frames that multiple as the basis for the $65 target while retaining the Overweight rating.
Celsius has been actively broadening its footprint across the energy drink category, competing against established brands and expanding distribution across multiple retail channels. The firm also announced a $300 million share repurchase program, enabling buybacks through open market purchases and privately negotiated transactions.
Separately, meetings between Celsius executives and UBS resulted in UBS reiterating a Buy rating and maintaining a $65 price target. UBS described a favorable long-term view despite concerns tied to the transition of the Alani Nu brand into the Pepsi system, a process the note indicates is expected to finish by the end of November.
The report also contains a reference that Piper Sandler had previously lowered a price target for Celsius to $61, citing a conservative outlook, though the firm continued to maintain an Overweight rating. In subsequent commentary, Piper Sandler reiterated its Overweight stance after gaining additional clarity on Celsius' third-quarter results and forward considerations, and it emphasized that sales growth appears on track for fourth-quarter 2025 while acknowledging some inventory adjustments are underway.
These analyst actions and corporate moves - from a valuation framework change to an active buyback program - underscore continued market and analyst interest as Celsius navigates distribution expansion and competitor shifts.
Clear summary
Piper Sandler raised its Celsius price target to $65 from $61, kept an Overweight rating, shifted valuation to an estimated 2027 EV/Sales multiple of about 5.0x, and noted potential upside to 2025 and conservative 2026 sales estimates. Celsius announced a $300 million share buyback, and UBS reiterated its Buy rating and $65 target amid industry transitions involving Alani Nu and the Pepsi system.
Key points
- Piper Sandler raised its price target on CELH to $65 from $61 and maintained an Overweight rating.
- The new target is anchored to ~5.0x estimated calendar 2027 EV/Sales rather than 2026 estimates.
- Celsius unveiled a $300 million share repurchase program and is expanding distribution while navigating competitor transitions.
Risks and uncertainties
- Sales estimates for 2025 and 2026 may prove conservative or require revision - the retail reset timing and magnitude are uncertain. (Impacts consumer staples and retail sectors)
- The transition of the Alani Nu brand into the Pepsi system introduces uncertainty for competitive dynamics and inventory flows. (Impacts beverage manufacturers and retail distribution)
- Analyst target adjustments and differing firm assessments create variability in market expectations for Celsius' valuation. (Impacts equity markets and investor sentiment in consumer staples)