
What Happened?
Shares of energy drink company Celsius (NASDAQ:CELH) jumped 2.5% in the morning session after Deutsche Bank upgraded the stock from a 'Hold' to a 'Buy'.
The bank's analysts cited the stock's recent 33% decline as an overreaction to new competition. The stock had fallen roughly 25% in the current year, a stark contrast to its 74% return in 2025.
After the initial pop the shares cooled down to $34.97, up 2.6% from previous close.
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What Is The Market Telling Us
Celsius’s shares are very volatile and have had 25 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 6 days ago when the stock gained 4.5% on the news that the stock's positive momentum continued as Deutsche Bank upgraded the stock to Buy from Hold, citing the recent sharp selloff as a compelling entry point.
The bank's analysts believed the stock's recent 33% decline was an overreaction to concerns about new private-label competition from Costco. They noted that Costco was expected to account for only 10% of Celsius's 2025 sales. Despite the rating upgrade, Deutsche Bank lowered its price target on the shares to $44 from $56. The sentiment was shared by others on Wall Street, as TD Cowen also reiterated a Buy rating, viewing the stock's recent pullback as overdone.
Celsius is down 26.8% since the beginning of the year, and at $34.97 per share, it is trading 46.1% below its 52-week high of $64.86 from October 2025. Despite the year-to-date decline, investors who bought $1,000 worth of Celsius’s shares 5 years ago would now be looking at an investment worth $2,003.
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