What Happened?
Shares of energy drink company Celsius (NASDAQ: CELH) jumped 4.5% in the afternoon session after the stock's positive momentum continued as Deutsche Bank upgraded the stock to Buy from Hold, citing the recent sharp selloff as a compelling entry point.
The bank's analysts believed the stock's recent 33% decline was an overreaction to concerns about new private-label competition from Costco. They noted that Costco was expected to account for only 10% of Celsius's 2025 sales.
Despite the rating upgrade, Deutsche Bank lowered its price target on the shares to $44 from $56. The sentiment was shared by others on Wall Street, as TD Cowen also reiterated a Buy rating, viewing the stock's recent pullback as overdone.
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What Is The Market Telling Us
Celsius’s shares are very volatile and have had 25 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 previous big move we wrote about was 11 days ago when the stock dropped 3.9% on the news that concerns grew the war in Iran could disrupt global fertilizer shipments, threatening a surge in food prices and impacting farmers' costs.
The conflict led to the closure of the Strait of Hormuz, a crucial trade artery for fertilizer production and transportation. This disruption came at a critical time for American farmers entering the spring planting season, with fertilizer accounting for a significant portion of production expenses for major crops like corn. Economists warned that prolonged conflict could lead to a lower global supply of staple cereals and other agricultural commodities. According to the Food and Agriculture Organization, this could result in a years-long setback for food security in vulnerable nations, compounding the effects of recent global shocks and stoking broader inflationary fears in the market.
Celsius is down 25.5% since the beginning of the year, and at $35.56 per share, it is trading 45.2% below its 52-week high of $64.86 from October 2025. Despite the year-to-date decline, investors who bought $1,000 worth of Celsius’s shares 5 years ago would now be looking at an investment worth $2,220.
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