CELH
Another ‘show me’ moment for Celsius
Celsius Holdings is back in the market’s crosshairs Friday, with shares slipping after Deutsche Bank downgraded the energy drink maker to Hold from Buy. The firm kept its $35 price target, but the message was pretty clear: the turnaround story is getting a little long in the tooth.
The problem isn’t the vibe — it’s the timing
Deutsche Bank said core business trends weakened through the second quarter, with revenue and margins coming in below expectations. The bigger issue? Management is now talking about a meaningful sales improvement in fiscal 2027, which is basically Wall Street speak for “not tomorrow, not next quarter, maybe pack a lunch.”
That’s a tough sell when investors were already getting impatient after softer second-quarter results earlier this month and previous downgrades from Bernstein and Maxim. The market loves a comeback story — but only if the comeback isn’t stuck in traffic.
Why this matters for your portfolio
For CELH holders, this isn’t just one analyst being grumpy. It’s another data point suggesting the recovery may take longer and require more proof before the stock can re-rate higher.
- Revenue and margins disappointed in Q2
- Deutsche Bank sees the recovery timeline stretching to 2027
- The shares were already under pressure, and this downgrade adds fuel to the fire
Big picture: Celsius still has the brand, but Wall Street wants evidence, not just optimism. And right now, evidence is doing the slow-walk.