Celsius Holdings: Fluctuations and Opportunities – A Look at 2025

Celsius Holdings is caught in a true rollercoaster ride in 2024. The company started the year with a bang but had to endure significant price losses over the months. After initially rising sharply, the stock is down over 35% for the year. However, a recent analyst report has given the stock a boost. A large part of Celsius's volatility is due to declining revenue growth following the initial sales successes with PepsiCo in 2022. At the start of the year, the company recorded an impressive revenue increase of 95%, but this slowed to 37% in the first quarter and 23% in the second quarter. Market data from analysts also signaled waning momentum in the convenience store sector—a key segment for energy drink sales. A glimmer of hope for Celsius is the growing popularity of the brand among teenagers, as revealed by a Piper Sandler survey, which gave the brand a significant lead over competitors like Red Bull and Monster Beverage in this demographic. Analysts from Stifel are also optimistic that convenience store sales will recover next year, which could be a major advantage for Celsius. With a focus on international growth opportunities and performance in alternative distribution channels, including notable growth in Amazon sales, Celsius remains an attractive option for investors. The company recently introduced its energy drinks in the United Kingdom and Ireland and plans further market entries in Australia, France, and New Zealand. Despite current challenges, the company remains confident about its growth prospects. The stock is currently trading with a price-to-earnings ratio of just over 33. Whether this valuation is justified largely depends on whether revenue growth can regain momentum next year. Short-term setbacks may still be possible, but long-term attractive buying opportunities could emerge for investors.