Is CELH a good stock to buy? We came across a bullish thesis on Celsius Holdings, Inc. on Latticework’s Substack by MOI Global Equity Research. In this article, we will summarize the bulls’ thesis on CELH. Celsius Holdings, Inc.’s share was trading at $43.61 as of March 16th. CELH’s trailing and forward P/E were 174.44 and 28.33 respectively according to Yahoo Finance.
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Celsius Holdings, Inc. (CELH) has established itself as a differentiated player in the energy drink market, targeting health-conscious consumers with a “better-for-you” value proposition. Unlike traditional brands such as Red Bull and Monster, which lean into extreme sports or blue-collar identities, Celsius emphasizes functional energy, zero sugar, and proprietary ingredients, successfully broadening the category by appealing to women and former coffee drinkers.
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The recent acquisition of Alani Nu enhances this strategy by adding a complementary, female-focused brand known for viral social marketing and a high-velocity limited-time offer strategy, driving strong customer recurrence. Celsius’s growth strategy focuses on expanding the overall category rather than merely capturing share from incumbents, leveraging the $100 billion coffee market where consumers spend 3–4x more annually than on energy drinks. The integration of Alani Nu into PepsiCo’s distribution network provides a significant catalyst, enabling expansion from mass retailers into high-frequency convenience channels.
While operational friction from the transition to PepsiCo’s system, including inventory destocking, temporarily pressured top-line growth, these are viewed as transitional challenges, with improving scanner data supporting stronger sell-through. The partnership, reinforced by an 11% PepsiCo stake and the appointment of a former Pepsi executive as COO, positions Celsius as the “category captain” within the system.
International expansion presents a large, underpriced opportunity, as Celsius currently generates only 5% of revenue outside the U.S. compared with competitors’ 40%. The company maintains a net cash position, has authorized a $300 million share repurchase program, and trades at approximately 17x forward EBITDA—a compelling valuation relative to historical peer ranges. With expected margin expansion and free cash flow approaching $1 billion, Celsius offers significant upside, with a projected five-year IRR of nearly 17%.
Previously, we covered a bullish thesis on Celsius Holdings, Inc. (CELH) by One-Hovercraft-1935 in May 2025, which highlighted the company’s focus on health-conscious consumers, resilience amid distribution issues, and the Alani Nu acquisition. CELH’s stock price has appreciated by approximately 11.99% since our coverage. MOI Global Equity Research shares a similar view but emphasizes category expansion, PepsiCo integration, and international growth as key catalysts.
Celsius Holdings, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held CELH at the end of the fourth quarter which was 58 in the previous quarter. While we acknowledge the risk and potential of CELH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CELH and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
