JPMorgan Boosts Celsius Target on PepsiCo Deal Momentum, Sees Alani Nu as Growth Engine
In a move underscoring growing confidence in the energy drink maker's strategic trajectory, analysts at JPMorgan have increased their price target for Celsius Holdings, Inc. (NASDAQ:CELH) from $68 to $77, maintaining an Overweight rating. The revision, issued on January 29 as part of the firm's fourth-quarter earnings preview, points to a "favorable setup" for the stock, with potential for both earnings and valuation multiples to exceed current expectations.
The bank's analysts highlighted two primary catalysts. First, they anticipate Celsius will reap significant benefits from its elevated role as PepsiCo's "U.S. Strategic Energy Drink Captain" starting in 2026, a status that grants it influential shelf-space and marketing authority within the beverage giant's vast network. Second, the recently acquired Alani Nu brand—a line of sugar-free energy drinks and supplements—is gaining rapid traction as it integrates into PepsiCo's distribution system, a process that began December 1, 2025.
Celsius's blistering growth was already on display in Q3 2025, where it reported consolidated revenue of approximately $725 million, a staggering 173% increase year-over-year. This surge is largely attributed to the accelerating PepsiCo partnership, which has dramatically expanded Celsius's retail footprint beyond its traditional fitness channels.
Founded in 2004 and based in Boca Raton, Florida, Celsius has carved out a niche by marketing its products as healthier, fitness-oriented alternatives in the crowded energy drink sector—a positioning that continues to resonate with health-conscious consumers.
Market Pulse: Voices from the Floor
"This isn't just about one quarter," says David Chen, a portfolio manager at Horizon Growth Capital. "JPMorgan's target hike signals a belief in Celsius's long-term structural advantage. The PepsiCo deal isn't just distribution; it's category leadership. That's a game-changer for sustainable market share gains."
However, not all observers share the unbridled optimism. Rebecca Shaw, an independent consumer staples analyst, offered a more critical take: "Let's pump the brakes. The valuation is baking in perfection. A 173% growth rate is unsustainable, and the entire energy drink space is becoming ferociously competitive. One misstep in execution or a shift in consumer trends, and this stock could get crushed. This feels like hype chasing."
Michael Torres, a retail strategist, focused on the operational synergy: "The real story here is Alani Nu. Integrating it into Pepsi's system so quickly is a masterstroke. It gives Celsius a second high-growth brand to scale, diversifying its portfolio and appealing to a slightly different demographic within the active lifestyle umbrella."