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.
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.
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 17,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets