Is Celsius Stock Going to $40? 1 Wall Street Firm Thinks So.

Group 1 - Celsius Holdings has experienced a challenging year with lower sales due to a cautious consumer-spending environment, but Needham has raised its price target from $38 to $40 following the latest earnings report [1][2] - The company's revenue declined by 4% year over year in Q4 2024, with a 3% increase for the full year, marking a significant drop from the triple-digit growth reported in 2023, largely due to inventory adjustments by its largest distributor, PepsiCo [3] - The energy drink market presents a long-term growth opportunity for Celsius, which ranks third in market share behind Red Bull and Monster Beverage, and the recent acquisition of Alani Nu could help broaden its product appeal [4] Group 2 - The $1.8 billion acquisition of Alani Nu is viewed by some investors as a stretch for growth, but it is seen as an affordable way for Celsius to increase market share and expand its beverage lineup, with management indicating it will be accretive to earnings in the first year [5] - Celsius has a forward price-to-earnings ratio of 28, and while it may not return to triple-digit growth rates, the stock's current valuation at approximately $27 per share offers better value and return prospects following a 73% decline from its all-time high [6]