What Happened?
Shares of energy drink company Celsius (NASDAQ: CELH) fell 4.5% in the afternoon session after analyst firm Piper Sandler lowered its price target on the stock to $61 from $69, citing a more conservative outlook.
The firm pointed to higher incentive costs that reduced revenues and also lowered its sales estimates for 2026 and 2027. This move followed the company's recent quarterly report, which revealed a net loss despite strong revenue, alongside concerns about sales growth and inventory issues.
Adding to the pressure, KeyBanc initiated coverage with a neutral “hold” rating, noting operational integration hurdles that could limit near-term upside. Furthermore, UBS had previously noted concerns about a “modest slowing for the brand and sequential market share pressure.”.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Celsius? Access our full analysis report here.
What Is The Market Telling Us
Celsius’s shares are extremely volatile and have had 30 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 9 days ago when the stock gained 4.6% on the news that Goldman Sachs identified the company in a list of stocks poised to benefit from spending by middle-income consumers.
The investment bank noted its expectation that stocks with exposure to this consumer group would continue to outperform in the coming months. In a report, Goldman Sachs analysts highlighted several companies, including Celsius, Nike, and Starbucks, that they believed were well-positioned. This inclusion suggested confidence from the influential bank that Celsius could see sustained growth driven by this key demographic.
Celsius is up 51.2% since the beginning of the year, but at $41.10 per share, it is still trading 36.6% below its 52-week high of $64.86 from October 2025. Investors who bought $1,000 worth of Celsius’s shares 5 years ago would now be looking at an investment worth $3,093.
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