PepsiCo increases stake in Celsius (CELH) to 11%, investing $585 million in convertible preferred stock. CELH stock up 200% in 2025, boosted by PepsiCo’s strategic alignment with access to U.S. and Canadian distribution for wellness brand Alani Nu. Investors cautious due to high valuation and rising operating costs.

PepsiCo’s investment in CELH follows blockbuster Q2 financials, with revenue up 84% and net income up 25% year-over-year. While PepsiCo’s stake validates CELH’s growth potential, caution is advised due to high valuation and rising operating costs. Analysts see limited upside in CELH stock over the next 12 months.

CELH stock trading at a high forward P/E multiple of nearly 55x, raising concerns about margin pressure from rising operating costs. Wall Street no longer forecasts meaningful upside in CELH shares, despite a “Strong Buy” consensus rating. Potential downside of 5% from current levels based on mean target of $59.

Read more at Yahoo Finance: Pepsi Is Doubling Down on Celsius. Should You Follow Suit and Buy CELH Stock Here?