Overview
Celsius Holdings Inc (NASDAQ: CELH) saw its shares fall 5.1% in pre‑market trading on Thursday, 27 August 2026, after Deutsche Bank downgraded the energy‑drink maker to Hold from Buy.
Analyst Action
Deutsche Bank analyst Steve Powers cut his rating, citing mounting fundamental challenges. He noted that core Celsius trends weakened further through the second quarter of 2026, with both revenue and profitability missing expectations. Consequently, management has pushed the timing of a meaningful recovery to fiscal year 2027, reducing confidence in the pace of re‑acceleration.
Price Target
Despite the downgrade, Deutsche Bank raised its price target for Celsius to $35, up from $30.
Historical Context
Powers had upgraded Celsius to Buy in March when the stock had fallen nearly 40% in a month, based on perceived category growth, distribution gains, portfolio simplification, and margin opportunities. Over the past month the stock rallied roughly 30%, which Powers attributes largely to investor expectations that external pressure from shareholders, activists, and the board could accelerate operational improvements or strategic actions. He cautioned that such outcomes are difficult to underwrite with conviction and that evidence of a durable recovery in the core Celsius brand is unlikely before calendar 2027.
Market Reaction
The downgrade and accompanying commentary triggered a 5.1% pre‑market decline, reflecting market skepticism about the near‑term recovery outlook.