Celsius Holdings Plunges 11.86% Amid Revenue Concerns

Celsius Holdings' stock price plummeted by 11.86% during pre-market trading on May 6, 2025, marking a significant decline for the energy drink company.

Piper Sandler recently raised their target price for Celsius Holdings from $43.00 to $44.00, maintaining an "overweight" rating. This adjustment reflects a positive outlook on the company's future performance, despite the recent stock price drop.

Celsius Holdings reported its first-quarter 2025 financial results, revealing that revenue was impacted by the timing and structure of its U.S. distributor incentive program and elevated retail promotional allowances. These factors contributed to the company's revenue challenges, which have been a concern for investors.

JPMorgan also increased its price target for Celsius Holdings to $44 from $39, indicating continued confidence in the company's prospects. Additionally, the brand Alani Nu, owned by Celsius Holdings, surpassed $1 billion in sales, highlighting the company's strong brand portfolio.

Celsius Holdings is set to report its Q1 earnings, with analysts expecting an adjusted EPS of $0.18, slightly below the FactSet estimate of $0.20. The company's revenue growth has faced difficulties, with a decline reported as of December 31, 2024. Investors will be closely watching these earnings to gauge the company's performance and future outlook.