Celsius Holdings Good Intentions but Bad Execution Present an Attractive Entry Point for Patient Investors

Research evidence excerpt

Celsius Holdings Good Intentions but Bad Execution Present an Attractive Entry Point for Patient Investors

J P M O R G A N North America Equity Research

20 May 2026

Celsius Holdings Overweight

CELH, CELH US

Good Intentions but Bad Execution Present an Price (19 May 26):$29.13

Attractive Entry Point for Patient Investors

Beverage, Household & Personal

We remain constructive on Celsius Holdings (CELH, Overweight, AFL) as near- Care Products

term headwinds to Celsius primarily driven by SKU optimization efforts, while Andrea Teixeira, CFA AC

admittedly larger than expected and exacerbated by sub-par execution, should set (1-212) 622-6735

the brand up well for a better medium to longer term for patient investors. Solid andrea.f.teixeira@jpmorgan.com

“core” portfolio performance appears to be masked by timing mismatches between Drew Levine, CFA

discontinued flavors falling out of the portfolio, timing of innovation, and (1-212) 622-0374

drew.levine@jpmorgan.com

execution of distribution gains/shelf-resets at retail. That said, we may be nearing

Shovana Chowdhury

peak headwinds for the brand as priority SKU ACV gains and improved shelf

(1-212) 270-2184

placements should be completed by the end of June (taking longer than expected) shovana.chowdhury@jpmorgan.com

and other timing headwinds subside (e.g., innovation lapping/timing). Moreover, J.P. Morgan Securities LLC

Alani Nu continues to perform well, and we expect a strong contribution from

Purple Cotton Candy LTO in the coming weeks. Net-net, while execution/

communication remains a key frustration with CELH, we believe the current

valuation (16.7x NTM P/E vs. MNST ~36x and other NARTD peers ~21x) for a

company with ~c.20% market share of the secularly growing energy drinks