Shares of Celsius Holdings Inc. (NASDAQ:CELH) are trading lower Friday afternoon as investors continue to weigh concerns that the energy drink maker’s business recovery could take longer than expected. Here’s what investors need to know.
- Celsius Holdings shares are under pressure. What’s pulling CELH shares down?
Deutsche Bank Downgrades Stock to Hold as Recovery Timeline Shifts to 2027
Friday’s selling pressure extends losses from Thursday after Deutsche Bank downgraded Celsius to Hold from Buy while maintaining a $35 price target.
In a research note, the firm noted that core business trends weakened through the second quarter, with revenue and margins falling short of expectations and management pushing the timeline for a meaningful sales improvement out to fiscal 2027.
Deutsche Bank cautioned that investor expectations were rising faster than tangible evidence of a turnaround, joining previous downgrades from firms like Bernstein and Maxim following soft second-quarter results earlier in the month.
Management Commentary Highlights Long-Term Strategy Amid Optimization
The cautious Wall Street sentiment follows Celsius Holdings’ second-quarter earnings report, during which Chairman and Chief Executive Officer John Fieldly outlined the company’s efforts to streamline its core assortment while expanding its broader beverage platform:
“During the second quarter of 2026, we made meaningful progress in advancing Celsius Holdings as a scaled portfolio of leading brands. We delivered a double-digit increase in second quarter revenue, completed the Rockstar integration, and maintained gross margin near first-quarter levels despite a challenging commodity environment… As it relates to our optimization project, we remain focused on improving assortment productivity and strengthening execution to return brand Celsius to sustainable growth.”
CELH Shares Edge Lower Friday Afternoon
CELH Price Action: Celsius Holdings shares were down 2.49% at $32.17 at the time of publication on Friday, according to Benzinga Pro data.
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