MW Celsius wants to sell more energy drinks to women. Wall Street likes the move.

By Steve Gelsi

Celsius shares are up more than 30%, as analysts say the company's purchase of drink maker Alani Nu will spark more growth

Celsius Holdings Inc.'s stock rallied on Friday as the energy-drink maker drew praise for its quarterly results and for its decision to buy energy-drink maker Alani Nu for $1.8 billion in a bid to boost its appeal to women.

Celsius's stock $(CELH)$ was up as much as 32% on Friday, its biggest one-day gain since it rose 33% on Aug. 6, 2020. The move also pushed the stock into positive territory for 2025. It is up about 26% so far this year.

"Alani is especially popular among young women, a group with which the larger energy brands under-index, and it enjoys a reputation of being 'even better for you,'" Roth Capital analyst Sean McGowan said in a research note.

Celsius Holdings just completed a year in which its energy-drink market share stalled and its growth rate dropped sharply, McGowan said.

Alani Nu's sales more than doubled in 2024 and continue to grow at a year-over-year rate of more than 50%, he noted.

McGowan reiterated a buy rating and a price target of $38 a share for Celsius after its "one-two punch of positive news."

Alani Nu is a "rising star" in the category of energy drinks, growing faster than the competition last year, he said.

Celsius reported fourth-quarter revenue of $332.2 million that topped FactSet analysts' consensus estimate of $326.2 million.

"We believe investor confidence in [Celsius] as an attractive growth stock will be enhanced by these news items," McGowan said in summing up the impact of the Alani Nu acquisition and of Celsius's quarterly results.

The acquisition will help Celsius grow its market share from about 10% as it benefits from Alani Nu's channel distribution, he said.

In terms of the company's quarterly results, McGowan said headwinds had been anticipated but "were not as negative as we had expected."

Celsius Holdings Chief Executive John Fieldly described Alani Nu as a "health and wellness lifestyle brand with a diverse functional portfolio of loyal female followings," along with $600 million in revenue in 2024.

Celsius is aiming to create a "leading better-for-you functional lifestyle platform at the intersection of megatrends and food and beverage," Fieldly said, according to a transcript of his remarks to analysts late on Thursday.

Including Friday's gains, Celsius shares are up 28.8% so far in 2025, while the Nasdaq Composite COMP has risen 2.6%.

-Steve Gelsi

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February 21, 2025 14:24 ET (19:24 GMT)

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