Barclays downgrades Fever-Tree after profit warning
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12:40 24/12/24
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Barclays downgraded tonic maker Fever-Tree on Tuesday to ‘equalweight’ from 'ovewrweight’ following its third profit warning in six months.
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"Whilst many may perceive this to mark trough profitability, we lack conviction in the guidance," the bank said.
"Fever-Tree expects inflationary pressures to persist but will not take pricing until FY23E, whilst competitive pressures are expected to be intensifying and consumers slowing down.
"We continue to like Fever-Tree's long-term opportunity but until our confidence in margins can be restored, we believe near-term headwinds will overshadow long-term growth."
The bank slashed its price target on the shares to 1,000p from 3,030p.