Deutsche Bank on Monday upgraded Colgate-Palmolive and Celsius Holdings to Buy, saying both stocks stand out after a turbulent March for consumer packaged goods. The bank framed its recommendation around what it sees as enduring strengths at each company amid elevated macroeconomic uncertainty.
In its note, Deutsche Bank wrote, "With macro uncertainty still high, two opportunities to us standout: CL and CELH." The firm pointed to what it regards as durable competitive advantages at Colgate and attractive valuation and growth dynamics at Celsius following recent market moves.
Colgate-Palmolive - franchise durability and strategic programs
On Colgate, Deutsche Bank emphasized a "quality and durable core franchise making the right long-term investments behind the company's 2030 Strategy, with ample P&L flexibility to weather current volatility." The analysts acknowledged ongoing challenges in North America but said those issues are "well understood by the market" and are expected to improve through 2026.
The bank highlighted several specific strengths it believes will help Colgate close performance gaps over time: "science-based innovation," enhanced data and AI capabilities, and stronger omni-channel execution. It also singled out initiatives such as Funding the Growth and the Strategic Growth and Productivity Program as "a material competitive advantage." These elements formed the basis for Deutsche Bank’s upgraded view.
Celsius Holdings - steep pullback presents buying case
Celsius was upgraded despite a share price decline of more than 37% over the past month. Deutsche Bank described that pullback as "a compelling entry point," noting the company remains "a still-expanding, profitable, and cash-generative franchise within the high-growth Energy Drink category."
The analysts acknowledged several risks facing Celsius - including competitive launches, soft consumption trends and rising aluminum costs - but argued the company’s incremental distribution gains and a more disciplined innovation pipeline should make top-line performance "more resilient than feared." They also pointed to "idiosyncratic levers for margin expansion," including benefits from PepsiCo's distribution system.
Implications for investors and sectors
Deutsche Bank’s note frames these upgrades in the context of broader volatility across consumer packaged goods. The bank’s analysis stresses company-level execution and strategic initiatives as the drivers behind the Buy ratings, rather than a change in macro outlook. Investors focused on consumer packaged goods and the beverage and energy drink segments will likely weigh the firm-level factors Deutsche Bank emphasized when assessing risk and opportunity.
Bottom line
Deutsche Bank views Colgate and Celsius as differentiated opportunities after recent market moves: Colgate for its strategic programs and resilience, and Celsius for its valuation and growth profile despite near-term headwinds. Both upgrades are grounded in the bank’s assessment of durable business characteristics and specific levers that could improve performance over time.