What Happened?

Shares of energy drink company Celsius (NASDAQ: CELH) jumped 6% in the afternoon session after TD Cowen upgraded the stock from Hold to Buy, adding that the "growth story is heating back up." The firm expects shares to trade higher amid improved confidence in the brand following the integration of the Alani Nu acquisition and wider distribution.

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What The Market Is Telling Us

Celsius’s shares are extremely volatile and have had 33 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 biggest move we wrote about over the last year was 4 months ago when the stock gained 39% on the news that the company delivered exceptional fourth quarter 2024 results, which blew past analysts' EBITDA, EPS, and revenue estimates, suggesting the struggles surrounding its controversy with Pepsi, where it oversold inventory to the behemoth, could be approaching the rearview mirror. Separately, the company announced its acquisition of Alani Nu, a popular up-and-coming energy drink brand. Zooming out, we think this was a solid quarter.

Celsius is up 60.3% since the beginning of the year, but at $43.59 per share, it is still trading 31.1% below its 52-week high of $63.28 from June 2024. Investors who bought $1,000 worth of Celsius’s shares 5 years ago would now be looking at an investment worth $14,176.

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