The new price target is based on 20.5 times the bank’s 2027 EV to EBITDA estimate, up from 15 times previously, bringing the valuation in line with non-alcoholic beverage peers, News.Az reports, citing CNBC.
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BofA said fourth-quarter performance was driven by Alani Nu, which exceeded expectations as it transitioned into the PepsiCo distribution system. The brokerage sees that shift setting up solid momentum into 2026.
For the core Celsius brand in North America, management outlined 17% shelf space gains for 2026 at the CAGNY conference. BofA said the added distribution should support consumption growth, even as inventory movements in the second half of 2025 create near-term noise in comparisons.
The bank raised its 2026 adjusted EBITDA forecast to $815.9 million from $746.0 million, reflecting stronger Alani Nu sales trends. It continues to model a 2026 gross margin of 50.6%, within management’s “low-50s” target and assuming sequential improvement through the year.
BofA said its previous Underperform rating was driven mainly by valuation and temporary comparison pressures rather than concerns about the brand or the broader energy drink category.
The firm reiterated that non-alcoholic beverages remain its preferred area within consumer staples and maintained a positive view on the energy segment.
