Key Takeaways Texas Attorney General Ken Paxton initiated an inquiry into Celsius Holdings regarding Alani Nu’s marketing tactics that may target younger consumers Shares of CELH declined ove
Celsius Holdings experienced a turbulent Thursday trading session. Shares plummeted over 6% following Texas Attorney General Ken Paxton’s disclosure of a state-level inquiry into Alani Nu’s promotional strategies, pushing CELH down to $27.72 — hovering just above the 52-week bottom of $27.66.
Paxton’s office contends that Alani Nu employs vibrant packaging, whimsical design features, and youth-focused branding that could directly attract minors and adolescents. Every Alani Nu container delivers roughly 200 milligrams of caffeine. The inquiry aims to determine whether the corporation violated the Texas Deceptive Trade Practices Act by misleading consumers.
Regardless of the investigation, BofA Securities analyst Peter Galbo maintained his position. The investment bank reaffirmed its Buy recommendation and $55 price objective for CELH, leaving its forecast unchanged.
The equity has declined approximately 30% across the previous six months. According to InvestingPro’s evaluation, the shares appear undervalued at present trading levels, considering the company’s $7.09 billion market capitalization.
The Texas investigation wasn’t the sole development. Morgan Stanley elevated CELH to Overweight from Equal Weight on Thursday, likewise establishing a $55 price objective. Analyst Eric Serotta highlighted an appealing risk-reward dynamic at present valuations.
Serotta observed that comprehensive Celsius category revenue — encompassing the Celsius, Alani Nu, and Rockstar brands — expanded 13.4% during the two weeks concluding May 16, 2026, approximately matching the 13.7% expansion recorded in the preceding measurement.
The Celsius brand itself demonstrates some vulnerability, with revenue declining 3.6% in the latest measurement versus a 2.3% drop previously. Dollar market share for the consolidated entity decreased 30 basis points to 18.9%.
Alani Nu drives the positive momentum. Revenue acceleration reached 51% in the most recent two-week interval, climbing from 49% the previous measurement. The final week achieved 55% expansion as the brand completed lapping a Costco promotional campaign.
Morgan Stanley anticipates scanner information will remain volatile near-term owing to more challenging comparisons. The investment bank projects Celsius brand expansion should strengthen during summer with broader shelf placement and improved velocities.
Celsius delivered robust Q1 2026 financial results. Earnings per share registered at $0.41, significantly surpassing the $0.30 analyst consensus. Revenue reached $783 million, exceeding the $763 million projection.
UBS likewise preserved a Buy recommendation with a $55 price objective, citing sustained expansion in household penetration and purchase frequency. The investment bank highlighted appeal spanning most consumer demographics, despite the brand’s maturation.
The Pepsi collaboration, approaching its fourth anniversary, remains fundamental to distribution capabilities throughout the product portfolio.
A recently introduced Celsius limited-duration product, Electric Vibe, captured approximately 30 basis points of category market share, although availability remains constrained.
Congressional examination of caffeine levels in energy beverages isn’t unprecedented. The sector has thus far circumvented comprehensive regulatory intervention, although the Texas inquiry introduces an additional challenge for Celsius particularly.
CELH traded at $27.72 when Morgan Stanley announced the upgrade, positioned near its 52-week minimum.
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