Celsius Holdings rated hold at $27.64 amid growth uncertainties despite PepsiCo deal and Alani Nu acquisition

Celsius Holdings is rated a hold at $27.64 per share, close to its fair value estimate of around $28. The company's partnership with PepsiCo and acquisition of Alani Nu have strengthened its position, but growth in its core Celsius brand remains uncertain after recent distribution changes. The current valuation is based on projected 2027 earnings per share of $1.55 and an 18x price-to-earnings multiple, assuming 7.3% revenue growth and a 17.5% operating margin. Key risks include slow recovery of the core brand, potential slowdown in Alani Nu's growth, margin pressures, and possible dilution from preferred share conversion.