BUZZ-Celsius surges on deal to buy wellness drinks brand Alani Nutrition

Updates

Shares of energy drink maker Celsius Holdings CELH.O surge 28% to $32.69 in early trade

Stock set for its best day since November 2020 if gains hold

Celsius to buy health and wellness drinks brand Alani Nutrition in $1.8 billion deal

Wedbush analyst Gerald Pascarelli says, "This deal makes good sense as Alani is one of the fastest growing brands in energy (drinks) with meaningful distribution whitespace"

Celsius also posts better-than-expected Q4 revenue and adjusted EPS

*But TD Cowen analyst Robert Moskow believes that if Alani cannibalizes Celsius' sales, the combined entity will grow much slower; says consumer loyalty for a six-year-old brand like Alani may not be as strong as Celcius thinks

Up to last close, stock had fallen 3% YTD; it slid 52% in 2024