This energy drink stock has doubled this year, and Goldman sees even more gains ahead
The outlook is bright for Celsius , according to Goldman Sachs. The bank initiated shares of the energy drink producer at a buy rating. Analyst Bonnie Herzog also set a 12-month price target of $72 per share, implying upside of 28%. Herzog singled out Celsius as “one of the best growth stories in broader CPG” with a long runway ahead of volume-led topline growth and margin expansion. “CELH is a functional energy drink company operating in the cyclically growing better-for-you energy drink category that has shown an impressive ability to grow and take share in a competitive industry,” she wrote. And although the stock has more than doubled this year, “we still see a favorable risk/reward and believe the market is underappreciating upside from further share gains and margin expansion over the next several years, which should drive a continued re-rating of the stock.” Driving the momentum for Celsius is its exposure to the very attractive energy drink category, Herzog wrote, noting its strong stance within the broader consumer staples industry. CELH YTD mountain CELH YTD chart “Our retailer contacts expect the U.S. energy drink category to grow a strong +12% this year … and we believe the category is poised to continue to gain share of wallet from other traditional caffeine categories (i.e. coffee) given shifting consumer preferences,” she said. The company also has a unique opportunity for further share gains, Herzog said, calling Celsius an existing category “disruptor.” The company holds 17.3% market share in the U.S. energy drink category, resulting from effectively taking share from brands such as Red Bull and Monster. “While we’re cognizant that share gains for CELH will become more challenging going forward — as is evident from Celsius’ uneven share performance recently — we’re confident that CELH can continue to take share and expand the energy drink category, especially given its recent acquisition of Alani Nu,” Herzog added. Shares rose more than 2% in the premarket following Goldman’s call. Most analysts are bullish Celsius. Of the 22 who cover the stock, 16 rate it a buy or strong buy, per LSEG. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
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