Celsius Holdings (NASDAQ: CELH) received a significant endorsement on Wednesday as Goldman Sachs initiated coverage of the stock with a Buy rating and a $72 price target.
The investment bank described Celsius as “one of the best growth stories in broader CPG,” citing its strong market position and expansion in the functional energy drink segment.
Shares of Celsius, surged 2% on Thursday and have already delivered an impressive 113% return year-to-date.
Goldman Sachs pointed to the company’s robust fundamentals, highlighting a five-year revenue compound annual growth rate (CAGR) of 78% and a healthy gross margin of 50.5%.
The bank expects Celsius to maintain double-digit topline growth, primarily volume-driven, alongside further margin expansion.
Celsius currently commands a 17.3% share of the US energy drink category as of August 7, 2025, reflecting a year-over-year gain of 180 basis points.
The company has captured market share not only by expanding the category but also by taking share from competitors such as Bang, Red Bull, and Monster Beverage.
Category momentum and market expansion
Goldman Sachs emphasized the broader strength of the US energy drink industry as another reason for its positive stance.
The category has posted 14% growth year-to-date through August 23 in tracked channel scanner data, rebounding from slower periods.
Retail contacts expect the US energy drink market to grow by about 12% in 2025, providing Celsius with a favorable operating environment.
While the firm acknowledged that future share gains may be harder to achieve given recent uneven share performance, it remains confident in Celsius’ ability to drive incremental growth.
Goldman cited the company’s expansion strategies, including the acquisition of Alani Nu, as positioning Celsius to strengthen its role in category development and market share gains over time.
Broader analyst support and strategic developments
Goldman Sachs’ coverage initiation adds to a series of bullish calls from other Wall Street firms.
Jefferies recently raised its price target for Celsius to $72, citing the company’s expanded partnership with PepsiCo.
The deal includes PepsiCo’s acquisition of the Rockstar Energy brand, which is projected to add roughly $250 million in annual revenue by Q3 2026.
Truist Securities also increased its price target to $70, reflecting the integration of Alani Nu into PepsiCo’s distribution system.
Similarly, Piper Sandler lifted its target to $69, underscoring Celsius’ enhanced positioning as PepsiCo’s category captain.
Needham raised its target to $70, factoring in both the Rockstar acquisition and Alani Nu’s transition into PepsiCo’s network.
Alongside these financial developments, Celsius announced changes to its marketing leadership structure, naming Rishi Daing as Chief Marketing Officer.
Analysts see the appointment as part of the company’s broader effort to strengthen its brand presence and capitalize on its expanded distribution capabilities.
Taken together, Goldman Sachs’ positive initiation, coupled with supportive analyst commentary and strategic moves with PepsiCo, reinforce Celsius’ reputation as one of the fastest-growing players in the energy drink category.
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