Deutsche Bank downgrades Celsius stock rating on recovery concerns

Deutsche Bank has lowered its rating on Celsius Holdings (NASDAQ:CELH) stock to Hold from Buy, raising its price target to $35.00 from $30.00. Shares are currently trading at $35.23, undervalued according to the bank's Fair Value estimate of $43.18. Analyst Steve Powers upgraded the stock to Buy in March, believing execution risks were reflected in the share price after Celsius fell nearly 40% in a month.

Despite recent gains, core Celsius trends weakened in the second quarter of 2026, with revenue and profitability missing expectations. Management pushed back the timeline for a recovery to fiscal year 2027. While external pressure from shareholders, activists, and the board could potentially accelerate improvements, Deutsche Bank sees this as difficult to underwrite with confidence. Evidence of a durable recovery in the core Celsius brand is unlikely before calendar 2027.