Why Analysts Are Bullish on Celsius Stock After 30% Drop

Key Points

• Analyst upgrades Celsius Holdings despite market-wide volatility and trade tariffs.
• Strategic partnership with PepsiCo gives Celsius both independence and operational support.
• Institutional investment and expected EPS growth point to potential upside.

In today’s volatile market—shaken by recent trade tariffs introduced by President Trump—analysts have been cautious, avoiding bold predictions that could risk their reputations. When the broader S&P 500 is swinging unpredictably, optimistic stock calls become rare.

That is why a recent analyst upgrade for Celsius Holdings Inc. NASDAQ: CELH deserves attention. This boost is rooted in the underlying risk-to-reward ratio, which is heavily skewed in favor of buyers, and in the underlying fundamental growth tied to the business and its product popularity. The company’s momentum, both in sales and market sentiment, has attracted institutional interest and analyst optimism—signs pointing to a potential mispricing in the consumer discretionary sector. 

In short, this may be one of those rare bullish signals that shine through market uncertainty, and investors would be wise not to ignore it.

Don’t Count Celsius Out Yet

Once the hottest name in the sector, Celsius has now fallen to only 64% of its 52-week high prices to join other names in the space that shouldn’t be trading that low. One peer and close ally is found in shares of PepsiCo Inc. NASDAQ: PEP, which has invested in Celsius for not only upside but stewardship.

Unlike other snacks and beverage brands under its umbrella, Pepsi has given Celsius access to some of its logistics chain while also letting it operate as a standalone company. This strategy gives Celsius the infrastructure support to scale its operations, along with the benefit of Pepsi’s decades of industry and operational expertise.

However, because both of these great names now trade at such low levels compared to their 52-week highs, it becomes difficult to imagine any further downside from here—especially given that these declines likely price in most (if not all) of the worst-case scenarios that could come up for these stocks and the broader sector.

Taking that setup into account, it’s easier to understand why some Wall Street analysts are upgrading Celsius. But their optimism likely stems from more than just the technical setup; there’s a deeper story unfolding for Celsius that investors should pay attention to.

Big Money Is Betting on Celsius—Should You Follow?

As of early June 2025, Truist Financial analyst W. Chappell reiterated a Buy rating for Celsius stock and gave it a price target of up to $50. Considering how low this stock has traded recently, implying a potential upside of nearly 24%, which is significant considering the stock has dropped around 30% over the past year.

Part of the recent decline stems from concerns over new U.S. trade tariffs, which have hit consumer-focused companies particularly hard. With a relatively modest market cap of $10.6 billion, Celsius may have been seen as more vulnerable to volatility. But Chappell’s bullish stance suggests confidence in the company’s fundamentals and long-term trajectory.

As it turns out, Chappell wasn’t alone in making this bold call, as institutional investors are also making bold moves. For example, AllianceBernstein boosted its stake in Celsius by 26.3% as of mid-May 2025, bringing its entire position to a high of $642.8 million—about 7% ownership of the entire company. For individual investors, this can be seen as a vote of confidence from “smart money” signaling growing momentum behind the stock.

Of course, if the stock does rally to meet these double-digit price targets, it could attract even more institutional buying as many of these “long only” funds favor momentum stocks with enough fundamental reasoning to back them.

Wall Street analysts now expect Celsius to report up to 23 cents in earnings per share (EPS) for the third quarter of 2025, a jump of 27.8% from today’s reported 18 cents. This strong earnings growth would directly support bullish price targets and suggest that the potential upside is not just sentiment-driven but anchored in improving performance.

Even better, current analyst estimates already factor in some tariff-related risk. If a favorable trade deal is struck, these projections could rise even further, paving the way for upgraded valuations and potentially a renewed bull run for Celsius stock.