Celsius continues to rise due to the unexpected shelf space news

Investing.com – Celsius Holdings (NASDAQ:CELH) stock rose 3% on Monday, continuing last Friday’s 9.5% gain. Previously, the company’s shelf space comments at the New York Consumer Analytics Group meeting exceeded expectations.

The stock increased after management announced that Alani Nu will receive an additional 102% shelf space allocation in 2026, while the Celsius brand gained 17% additional shelf space that year. Analysts said the growth in shelf space exceeded investor expectations.

TD Cowen analyst Robert Moskow maintained a buy rating with a target price of $55. “We believe the quantifiable growth in Alani Nu distribution is a key positive for the stock. The company has established a solid third position in the energy drink category, and with its partnership with PepsiCo driving the distribution growth of Celsius and Alani Nu, the company is expected to further gain market share,” Moskow wrote.

The analyst pointed out that the growth in shelf space indicates upside potential for Alani Nu’s sales in 2025. TD Cowen currently forecasts a 31% growth for Alani Nu, with 2026 sales expected to reach $3.28 billion, above the market consensus of $3.23 billion.

Celsius management emphasized the benefits of its partnership with PepsiCo as the “energy drink category captain,” allowing the company to focus on brand and product portfolio strategies while leveraging PepsiCo’s distribution network. The company noted that 85% of the total growth in the energy drink category in 2025 came from sugar-free products, with Celsius driving 33% of that growth.

TD Cowen applied an 18x EV/EBITDA multiple to its 2027 EBITDA forecast, lower than Monster’s 27x multiple, due to Celsius’s history of operational volatility. The company’s 2026 EBITDA is expected to be $752.5 million, above the market consensus of $741.6 million.

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