BofA Upgrades Celsius Holdings to Buy, Raises Target to $65

Upgrade Cites Strong Performance

Bank of America has significantly upgraded its rating for Celsius Holdings, moving the stock two notches from Underperform to Buy. The bank also raised its price objective for the beverage company to $65 from a previous target of $45.

Rationale Behind the Upgrade

The decision follows stronger-than-expected fourth-quarter financial results from Celsius Holdings. Analysts at the bank cited these results along with improving growth prospects projected for 2026 as key drivers for the revised outlook and increased confidence in the company's trajectory.

Impact on Valuation

The new $65 price target is based on a revised valuation multiple of 20.5 times Bank of America's 2027 EV to EBITDA estimate. This is a substantial increase from the previous multiple of 15 times, bringing Celsius Holdings' valuation more in line with its peers in the non-alcoholic beverage sector.

Summary

This double upgrade from a major financial institution signals strong confidence in Celsius Holdings' financial health and future growth. Investors will be closely watching to see if the company can maintain its performance momentum to meet these heightened market expectations.

FAQ

Q: Why did Bank of America upgrade Celsius Holdings?
A: The upgrade was driven by stronger-than-expected fourth-quarter results and an improved outlook for growth in 2026.

Q: What is the new price target for Celsius Holdings?
A: Bank of America set a new price target of $65 per share, up from the previous $45.

Source: Investing.com