Overview

• Celsius Holdings' stock surged over 7% after Truist upgraded the stock to 'buy' and raised its price target to $45, citing the Alani Nu acquisition.
• The $1.65 billion acquisition is expected to consolidate Celsius' position in the women's energy drink market, a demographic projected to drive 110% of future market growth.
• The deal addresses recent sales declines for Celsius, which had been partly impacted by competition between Celsius and Alani Nu products.
• Celsius and Alani Nu now hold a combined 16% market share in the U.S. energy drink category, with a strong focus on women consumers.
• Analysts note that competitors Monster and Red Bull remain focused on male consumers, potentially limiting their appeal in the growing women's segment.