Bank of America delivered a double upgrade for Celsius Holdings, moving from Underperform to Buy and raising its price target to $65 from $45. The upgrade reflects stronger-than-expected fourth-quarter results and improving 2026 growth prospects, bringing the valuation in line with non-alcoholic beverage peers at 20.5 times 2027 EV to EBITDA.

Celsius benefited from Alani Nu's performance exceeding expectations during its transition to the PepsiCo distribution system. Management outlined 17% shelf space gains for 2026 at the CAGNY conference, with BofA projecting these expanded distribution channels will support consumption growth despite near-term inventory movements creating 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. BofA clarified its previous Underperform rating stemmed from valuation concerns and temporary comparison pressures, not fundamental issues with the brand or energy drink category.