Celsius Holdings (CELH) Stock Plunges 6% as Wall Street Analysts Advise Buying Opportunity
Celsius Holdings (CELH) stock dropped over 6% after Texas Attorney General Ken Paxton announced an inquiry into Alani Nu’s marketing tactics targeting younger consumers, pushing shares near their 52-week low at $27.66. Despite the investigation, analysts from BofA Securities and Morgan Stanley maintained or upgraded their Buy/Overweight ratings with a $55 price target, citing strong revenue growth in Alani Nu and overall category expansion." "article": "Celsius Holdings (CELH) shares fell 6% to $27.72 after Texas Attorney General Ken Paxton launched an investigation into Alani Nu’s marketing practices. The inquiry focuses on whether the brand’s vibrant packaging, youth-oriented branding, and high caffeine content (200 mg per container) violate the Texas Deceptive Trade Practices Act by misleading consumers, particularly minors. The stock hit a 52-week low of $27.66, though analysts remained bullish. BofA Securities kept its Buy rating and $55 price target, while Morgan Stanley upgraded CELH to Overweight from Equal Weight, also setting a $55 target. Eric Serotta at Morgan Stanley noted the company’s undervaluation and strong revenue trends, despite a 30% decline in shares over six months. Revenue data showed mixed performance: Alani Nu revenue surged 51% in the latest two-week period, while Celsius brand revenue declined 3.6%. Overall category revenue grew 13.4%, driven by Alani Nu’s acceleration. Morgan Stanley expects volatility near-term but anticipates Celsius brand growth during summer with expanded shelf presence. Celsius reported strong Q1 2026 results, with EPS of $0.41 (beating estimates of $0.30) and revenue of $783 million (exceeding projections of $763 million). UBS also maintained a Buy rating, citing sustained household penetration and purchase frequency. The Pepsi partnership, now in its fourth year, continues to support distribution across the product line. Analysts highlighted Alani Nu as the growth driver, with revenue gains outpacing declines in the Celsius brand. Despite the Texas probe, Wall Street firms see long-term upside, emphasizing the company’s market position and consumer appeal across demographics.
Celsius Holdings (CELH) shares fell 6% to $27.72 after Texas Attorney General Ken Paxton launched an investigation into Alani Nu’s marketing practices. The inquiry focuses on whether the brand’s vibrant packaging, youth-oriented branding, and high caffeine content (200 mg per container) violate the Texas Deceptive Trade Practices Act by misleading consumers, particularly minors. The stock hit a 52-week low of $27.66, though analysts remained bullish. BofA Securities kept its Buy rating and $55 price target, while Morgan Stanley upgraded CELH to Overweight from Equal Weight, also setting a $55 target. Eric Serotta at Morgan Stanley noted the company’s undervaluation and strong revenue trends, despite a 30% decline in shares over six months. Revenue data showed mixed performance: Alani Nu revenue surged 51% in the latest two-week period, while Celsius brand revenue declined 3.6%. Overall category revenue grew 13.4%, driven by Alani Nu’s acceleration. Morgan Stanley expects volatility near-term but anticipates Celsius brand growth during summer with expanded shelf presence. Celsius reported strong Q1 2026 results, with EPS of $0.41 (beating estimates of $0.30) and revenue of $783 million (exceeding projections of $763 million). UBS also maintained a Buy rating, citing sustained household penetration and purchase frequency. The Pepsi partnership, now in its fourth year, continues to support distribution across the product line. Analysts highlighted Alani Nu as the growth driver, with revenue gains outpacing declines in the Celsius brand. Despite the Texas probe, Wall Street firms see long-term upside, emphasizing the company’s market position and consumer appeal across demographics.
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