Why Analysts Are Bullish on Celsius Stock After 30% Drop

Core Viewpoint - The recent analyst upgrade for Celsius Holdings Inc. is noteworthy due to a favorable risk-to-reward ratio and strong fundamental growth, indicating potential mispricing in the consumer discretionary sector [2][6]. Group 1: Company Performance - Celsius stock is currently priced at $43.71, reflecting a 6.20% increase, with a 52-week range between $21.10 and $64.19 [2]. - The company has experienced a significant decline, trading at only 64% of its 52-week high, which suggests that it may be undervalued compared to its peers [3][5]. - Analysts expect Celsius to report earnings per share (EPS) of up to 23 cents for Q3 2025, a 27.8% increase from the current 18 cents, indicating strong earnings growth [11]. Group 2: Analyst Sentiment - Truist Financial analyst W. Chappell has reiterated a Buy rating for Celsius with a price target of $50, suggesting a potential upside of nearly 24% [7]. - The stock has dropped around 30% over the past year, but analysts believe that the current price reflects most worst-case scenarios [5][8]. - Institutional investors, such as AllianceBernstein, have increased their stake in Celsius by 26.3%, indicating growing confidence in the stock [9]. Group 3: Market Context - The broader market has been volatile due to recent trade tariffs, impacting consumer-focused companies like Celsius [8]. - Celsius has a relatively modest market cap of $10.6 billion, making it more susceptible to market fluctuations [8]. - If a favorable trade deal is reached, current analyst projections could improve, potentially leading to upgraded valuations for Celsius [12].