Fever-Tree share price: where next as analysts warn of ‘gin fatigue’

The drinks maker saw its share price slide last week after analysts at Jefferies slashed their price target for the stock and claiming British gin fatigue could harm its first-half results.

Fever-Tree Source: Bloomberg

Fevertree saw its share price take a major hit last week after the investment bank Jefferies slashed its target price for the stock to £27.00.

Since the announcement last week, the drinks maker has seen its share price fall by more than 7% to £21.74 – its lowest point since late-December last year.

Jefferies blames Fever-Tree downgrade on UK gin fatigue

Analysts at the US-based bank said that poor weather and British ‘gin fatigue’ will likely hurt its half-year results, which are scheduled to be released on July 23.

In a note to investors, Jefferies analysts Edward Mundy said that despite ‘good momentum’ in the US market, gains have begun to normalise in the UK, with steady growth in European markets like Spain and Belgium.

Earlier in the year, Mundy noted that consumer demand for gin may have reached its peak, as drinkers turn to more exotic beverages this summer.

Why not practice trading Fever-Tree and other related stocks with an IG Demo Account?

Fever-Tree helps British drinkers pair their G&Ts

In a bid to end British gin fatigue, Fever-Tree partnered with Amsterdam-based creative agency The Brave New Now to create a Gin & Tonic Pairing Wheel campaign to run this summer.

The campaign will help consumers better understand which of Fever-Tree’s premium tonics best suits a variety of different gins.

‘Bringing our Gin & Tonic Pairing Wheel to life in an outdoor campaign with a new graphic approach has been the perfect way for us to help G&T drinkers discover their favourite G&T pairings and keep exploring the vast array of gins available today,’ Fever-Tree UK brand manager Fergus Franks said.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

See an opportunity to trade?

Go long or short on more than 16,000 markets with IG.

Spread bet and trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Bid
Offer
-
-
China 300
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.