This company is transforming the energy drink industry, says TD Cowen

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The firm initiated coverage of the energy drink stock with an outperform rating and $250 per share price target.

TD Cowen's forecast implies 23.8% upside from Thursday's $201.94 close. "As the strong #3 in U.S. energy drink category, the growing popularity of Celsius' differentiated products is transforming the category and driving significant new incremental consumer engagement," analyst Vivien Azer said in a Thursday note. "This supports continued market share gains in the U.S., while the [PepsiCo] partnership establishes a credible international opportunity.

She added that Celsius is seeing outsized growth with women and more higher-income individuals, relative to its peers. The drink brand's popularity is soaring—and not just in the U.S. Following PepsiCo's $550 million investment in Celsius as part of a long-term distribution deal announced in August 2022, Azer noted that Celsius has "meaningfully" expanded its distribution across the country so far this year and has further opportunities to grow internationally in 2024.

 

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