Goldman Sachs downgrades Fevertree to 'sell'
![FeverTree | DL fevertree dl fever tree gin tonic soft drinks retail pub 2](https://img4.s3wfg.com/web/img/images_uploaded/e/4/fevertree_dl_fever_tree_gin_tonic_soft_drinks_retail_pub_2_620x350.jpg)
FEVERTREE DRINKS
1,079.00p
16:40 25/06/24
Goldman Sachs downgraded Fevertree to ‘sell’ from ‘neutral’ on Tuesday and cut the price target to 1,050p from 1,075p.
Beverages
21,054.06
16:39 25/06/24
FTSE AIM 100
3,696.79
16:54 25/06/24
FTSE AIM 50
4,199.67
16:54 25/06/24
FTSE AIM All-Share
768.03
16:54 25/06/24
The bank said it expects the posh tonic maker to deliver 6.2% reported sales growth in FY24, below consensus at +7.3% and company guidance at +8%.
"In light of moderating Nielsen data and ongoing Spirits demand normalisation, we expect +15.5% organic sales growth in the US, below consensus at +17%," GS said.
"We are also cautious on the UK growth (+0.3% GSe versus +1.9% consensus), where we note an ongoing softness of Fevertree in the off-trade and weak performance of Cocktail Bar channel."
GS said that while the company’s earnings per share growth algorithm of 18% between FY25-27e remains attractive, it is mostly driven by easing cost of goods sold rather than underlying top-line growth acceleration.
At 1120 BST, the shares were down 4.3% at 1,129p.