Fevertree share price: what’s the latest after reporting sales growth across all regions?
The premium producer of carbonated mixers continues to see its share price rise after reporting sales growth across all four operating regions last week ahead of its full-year results.
Fevertree Drinks has seen its share price climb more than 25% since reporting continued sales growth across all four operating regions in an unscheduled trading update last week ahead of its full-year results.
The supplier of premium carbonated mixers said that it expects to record double-digit revenue growth in 2019, with its US division performing ahead of expectations in the second half.
‘We continue to see growth across all four regions,’ Fevertree CEO Tim Warrillow said. ‘Indeed, sales accelerated in our key growth markets of the US and Europe.’
‘Fever-Tree's progress in the US is particularly encouraging and the signing of a US bottling partner is a further step in building our operations in this exciting market,’ he added.
Fevertree expects 13% revenue growth in 2019
Following a strong performance across all four regions, the company now expects to generate total revenue of between £266 million to £268 million, representing 12% - 13% growth, with margin forecasts unchanged.
Analysts had been forecasting sales of between £272 million to £275 million in 2019.
Fevertree said sales in the US have accelerated in the second half of 2019, with distribution expansion across the company's key off-trade accounts (sales via supermarkets and shops) and further distribution gains in on-trade (sales via restaurants and bars).
HSBC optimistic about the Fevertree share price
HSBC remains the most optimistic about the Fevertree share price, with analysts at the bank reiterating their ‘buy’ rating for the stock and issuing a target price of £33 a share.
Based on the stock closing at £21.85 on Monday, HSBC believes the stock has a potential upside of 51%.
However, other analysts from RBC, Jefferies, Deutsche Bank and JP Morgan are less enthusiastic about the stock, with the four banks issuing target prices between £22 to £24, representing a potential upside of between 0.7% and 9.8%.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
Please see important Research Disclaimer.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.