Dear readers,
We are glad to announce of our new website, https://uk.webfg.com. There you will continue to have access to the full content of the Sharecast newswire, alongside an improved and expanded suite of market data and research tools for both the UK and the main international markets. As a first step in the transition to the new site, over coming days and weeks the news and data pages on Sharecast.com will redirect you towards the new website which we earnestly hope you will find even more useful than the current service. Should anyone like to comment or provide constructive criticism on the new layout or what features they would like to see added or deleted, do please send us an e-mail to info@digitallook.com. Lastly, of course, we wish to express our heartfelt gratitude for your support and encouragement over the years as we continued to grow and expand the service.
Very best,
Sharecast

Login/Register

Berenberg downgrades Britvic after strong share price performance

Market Buzz

Berenberg downgrades Britvic after strong share price performance

Thu, 20 April 2017
Article viewed 69 times
http://stmedia.digitallook.com/web/img/dl/britvic.png
bool(true)
Berenberg downgrades Britvic after strong share price performance

(ShareCast News) - Berenberg downgraded Britvic to 'hold' from 'buy', keeping the price target at 725p, following a strong re-rating.
The bank noted that since the start of the year, the shares have risen by around 20%, despite little change to earnings estimates. It said the group had a good start to the year, with a decent first quarter, but simply reiterated that full-year results would be in line with expectations.

"Although we think that risk could be slightly skewed to the upside if trends from Q1 continue, we do not believe that there are sufficient catalysts to drive significant outperformance.

"Therefore, while a small amount of upside to our price target remains, we think the stock looks close to fair value given its relatively weak near-term growth profile."

Berenberg said a strong performance from Fruit Shoot in the US led to substantial international growth in the first quarter, adding that management has an ambitious target to increase multipack distribution points from 7k-8k outlets at end FY 2016 to 13k-15k at the end of this year.

"However, the company has been more conservative about the potential distribution gains from the range reviews set to take place during the spring. Elsewhere, Brazil was tough in Q1 as volumes fell by 8%, although constant currency revenue increased by 8% due to price rises.

"With the macro environment still volatile, we think trading may remain challenging over the coming periods. As such, although the recently acquired Bela Ischia business improves Britvic's platform in Brazil, it may not deliver significant growth if conditions do not improve."

At 0943 BST, the shares were down 1.6% to 661p.