Aug. 28 at 2:12 AM
Deutsche Bank downgraded Celsius Holdings to Hold from Buy while raising its price target to
$35 from
$30, citing weaker fundamentals and a longer path to sustainable growth. The bank said Q2 revenue and profitability missed expectations, with management pushing a meaningful recovery in the core Celsius brand toward fiscal 2027.
Shares have risen about 30% over the past month on hopes that shareholder and activist pressure could accelerate strategic changes, but Deutsche Bank sees those potential catalysts as difficult to value. Near-term comparisons remain challenging, particularly for Alani Nu as distribution tailwinds fade.
For Q4, Deutsche Bank expects revenue of
$738 million, nearly 4% below consensus, and adjusted EBITDA of
$149 million, about 10% below estimates, due to higher input costs, an unfavorable brand mix and investment needed to rebuild Celsius. Its fiscal 2027 revenue and EBITDA estimates are 5% and 12% below consensus, respectively.
$CELH