The analyst highlighted the company’s improved sales, innovative products, strategic marketing, and the acquisition of Alani Nu.
Celsius Holdings Inc. (CELH) stock rallied over 6% on Monday, after receiving a significant boost from TD Cowen, which upgraded the shares from ‘Hold’ to ‘Buy’ and raised its price target from $37 to $55.
The firm noted that sales trends have improved from a high single-digit decline in February to flat sales, with expectations for continued growth through the summer, as per TheFly.
A CNBC report said the company’s strategic initiatives have revitalized the energy drink brand.
TD Cowen analyst Robert Moskow attributed the positive shift to several key factors, including innovative product offerings like Retro Vibe, Playa Vibe, and Strawberry Passionfruit, as well as nationwide expansions of retail exclusives such as Watermelon Lemonade and Cherry Cola.
Effective marketing campaigns, such as "Live.Fit.Go,” have also contributed to the positive momentum, he said.
These efforts aim to broaden the brand's appeal beyond its core fitness-focused audience. Additionally, the broader rebound in the energy drink category has provided a favorable backdrop for Celsius's growth.
The analyst also highlighted the strategic acquisition of Alani Nu, a health and wellness brand, for $1.8 billion.
This move is expected to strengthen Celsius's position as the third-largest brand in the U.S. energy drink market, he said. The integration of Alani Nu is anticipated to provide access to new customer segments and distribution channels, further bolstering Celsius's growth prospects.
The company’s first-quarter revenue declined 7% year-on-year (YoY) to $329.3 million, below the analysts' consensus estimate of $342.31 million, as per Finchat data.
On Stocktwits, retail sentiment toward Celsius remained in ‘neutral’ territory.

A Stocktwits user lauded the stock’s performance in the past few months.
Celsius stock has gained over 65% in the last 12 months and has lost over 25% in the last 12 months.
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