Celsius Holdings Inc. (NASDAQ: CELH) shares rose more than 3% pre-market Tuesday after Morgan Stanley upgraded the stock to Overweight from Equalweight and lifted its price target to $70.00 from $61.00.

The firm said Celsius was poised for another leg higher, supported by a reacceleration in scanner and topline growth. Analysts noted that the brand had returned to growth after last year's slowdown, with easier comparisons expected from December through mid-2026.

Celsius' Alani brand, which contributes around 40% of sales, had moderated growth versus the prior quarter but was expected to accelerate after its transition to Pepsi's distribution system in December. Analysts also cited benefits from Celsius' new captaincy agreement with Pepsi, which grants greater control over shelf space and product prioritization.

Morgan Stanley projected Celsius would benefit from a favorable pricing environment and resilient demand, with revenue and adjusted EBITDA forecasts for FY26 and FY27 running above consensus.