CELH Stock Clocks Second Consecutive Week Of Losses Amid UK Ban Concerns, Analyst Price Target Cuts

• The ban comes as Celsius faces ongoing gross margin compression from the integration of lower-margin acquired brands such as Alani Nu and Rockstar.
• Growth in the flagship Celsius brand has slowed. 
• Stifel and Citi cut their price targets on CELH earlier this week.

Celsius Holdings (CELH) shares continued to decline on Friday, pressured by fresh regulatory concerns in the UK and weakening trends in the company’s core brand.

The stock closed down 3% on Friday, adding to a 1% drop on Thursday. The stock is now on track for its second consecutive week of losses.  

UK Ban Adds Regulatory Pressure

The UK government, on Thursday, confirmed it will ban the sale of high-caffeine energy drinks to children under 16 in England starting April 2027. Drinks containing more than 150mg of caffeine per liter, which includes most Celsius products, will no longer be sold to anyone aged 15 and under across retail, online and vending channels, the government said.

The ban comes as Celsius faces ongoing gross margin compression from the integration of lower-margin acquired brands such as Alani Nu and Rockstar. At the same time, growth in the flagship Celsius brand has slowed, with recent performance impacted by the streamlining of its product lineup and softer demand in core flavors.

Analysts Lower Price Targets

Earlier this week, Stifel lowered its price target on Celsius to $45 from $62 while maintaining a Buy rating, citing weaker sales trends in the core Celsius brand.

Citi analyst Filippo Falorni cut the firm’s price target to $50 from $60, also keeping a Buy rating. As part of its Q2 earnings preview, Citi expects muted trends in both the U.S. and Europe, partly due to higher gas prices affecting consumer spending. The lowered price targets still imply a potential upside of 55% to 72% from the stock’s closing price on Friday.

The company is slated to report its Q2 earnings early next month.

How Did CELH Retail Traders React?

According to data from Stocktwits, retail sentiment around CELH stock rose from ‘bearish’ to ‘neutral’ over the past 24 hours, while message volume stayed at ‘low’ levels.

A Stocktwits user said that they are a firm believer in the stock and added that they would buy more if they had funds.

Another user pointed to PepsiCo’s recent Q2 results as a negative signal for the broader drinks category, possibly noting soft performance in its North American beverage segment.

CELH stock has fallen about 37% year-to-date. 

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