Celsius Holdings (CELH) Is Up 6.9% After Rockstar Acquisition and $700M Refinancing - Has the Growth Story Shifted?

• In recent weeks, Celsius Holdings completed the acquisition of Rockstar and secured a new US$700 million term loan B, refinancing previous debt at lower interest rates and enhancing financial stability.
• These moves, together with new distribution deals and favorable analyst commentary, highlight the company's efforts to expand its product portfolio, reinforce market competitiveness, and pursue disciplined growth through operational and financial improvements.
• With refinancing lowering interest costs and supporting growth initiatives, we’ll explore how this strengthens Celsius Holdings’ investment narrative and future outlook.

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Celsius Holdings Investment Narrative Recap

To be a shareholder in Celsius Holdings, you have to believe in the ongoing shift toward health-focused, functional beverages and the company's ability to stay ahead of changing tastes while expanding its distribution networks. Recent refinancing and acquisitions shore up its resources for further growth, but in the short term, distribution strength through partners like PepsiCo remains the most meaningful catalyst, while input cost volatility, particularly aluminum and tariff pressures, stands out as the key risk. The latest news tightens financial footing, though it does not materially alter the significance of these near-term drivers.

Among recent announcements, the expanded partnership with PepsiCo, now distributing the Alani Nu brand in North America, directly impacts future growth prospects. This integration enhances reach and shelf presence for both Celsius and Alani Nu, supporting faster scaling and retail penetration, which are central to top-line growth and the company's ability to offset margin pressures from rising costs.

Yet, in contrast to these advances, ongoing volatility in commodity prices and input costs is a risk investors should have on their radar, especially if...

Read the full narrative on Celsius Holdings (it's free!)

Celsius Holdings' narrative projects $3.7 billion revenue and $532.9 million earnings by 2028. This requires 30.1% yearly revenue growth and a $437 million increase in earnings from the current $95.9 million.

Uncover how Celsius Holdings' forecasts yield a $67.90 fair value, a 5% upside to its current price.

Exploring Other Perspectives

Thirty individual fair value estimates from the Simply Wall St Community span a wide US$31.71 to US$80 range. Given this diversity, keep in mind that dependence on major distribution partners remains crucial for Celsius Holdings’ ongoing performance, read on for more on how this impacts shareholder value.

Explore 30 other fair value estimates on Celsius Holdings - why the stock might be worth as much as 23% more than the current price!

Build Your Own Celsius Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Celsius Holdings research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.
• Our free Celsius Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Celsius Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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