MW This energy-drink stock is rallying thanks to a $1.8 billion acquisition

By Steve Gelsi

Celsius shares are up more than 30% after its quarterly results topped estimates and it announced plans to buy Alani Nu

Celsius Holdings Inc.'s stock rallied on Friday as the beverage maker drew praise both on its quarterly results and its decision to buy energy-drink maker Alani Nu for $1.8 billion

Roth Capital analyst Sean McGowan reiterated a buy rating and a price target of $38 a share for Celsius $(CELH)$ after its "one-two punch of positive news."

Celsius's stock was up nearly 32% on Friday in its biggest gain since it rose 29% on Nov. 12, 2020. The move also pushed the stock into positive territory for 2025; it's now up nearly 29% so far this year.

Roth Capital's McGowan said Alani Nu is a "rising star" in the category of energy drinks and grew faster than the competition last year.

In a second positive development, Celsius reported fourth-quarter revenue of $332.2 million that topped FactSet analysts' consensus estimate of $326.2 million.

"We believe investor confidence in CELH as an attractive growth stock will be enhanced by these news items," Roth Capital's McGowan said.

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

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

"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,'" McGowen said in a research note.

The Alani acquisition will help Celsius roughly grow its market share from about 10% as it benefits from Alani's new 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."

Including Friday's gains, Celsius stock is 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 11:46 ET (16:46 GMT)

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