Goldman Says Celsius Is Brewing Up A Growth Story Worth Watching

Energy drink company Celsius Holdings Inc (NASDAQ:CELH) is among the "best growth stories" in the broader consumer packaged goods (CPG) segment, according to Goldman Sachs.

The Celsius Holdings Analyst: Analyst Bonnie Herzog initiated coverage with a Buy rating and price target of $72.

The Celsius Holdings Thesis: The company has exposure to the "cyclically growing better-for-you energy drink category," and has demonstrated "an impressive ability" to grow and gain market share in this competitive segment, Herzog said in the initiation note.

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The energy drink category segment is witnessing strong high-single-digit to double-digit volume-driven growth, she added.

While this category's growth in the U.S. slowed in 2024, it has rebounded by around 14% growth year to date through August, the analyst stated. This category could continue gaining share of wallet from traditional caffeine categories, she added.

While Celsius had taken market share from Bang Energy BXNG, Red Bull, and Monster Beverage Corp MNST, "we’re confident that CELH can continue to take share and expand the energy drink category, especially given its recent acquisition of Alani Nu," Herzog further wrote.

CELH Price Action: Celsius Holdings shares were up 3.39% at $58.12 at the time of publication on Thursday. The stock is approaching its 52-week high of $63.50, according to Benzinga Pro data.

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