HSBC downgrades Fevertree despite 'strong' sales in Germany, Italy and US
FEVERTREE DRINKS
1,184.00p
08:19 16/05/24
HSBC analysts downgraded their recommendation for shares of Fevertree from 'buy' to 'hold', telling clients that they now saw "limited upside" in the share price.
Beverages
22,590.66
08:19 16/05/24
FTSE AIM 100
3,824.31
08:20 16/05/24
FTSE AIM 50
4,206.22
08:20 16/05/24
FTSE AIM All-Share
791.33
08:20 16/05/24
Nevertheless, their estimates for the beverage maker were unchanged.
Citing the latest Nielsen IQ data, they also noted the "strong" year-on-year growth in the company´s sales in Italy and Germany over the four weeks ending on 12 September.
In the first of those markets, sales had jumped by 78%, alongside a 9% rise in Germany.
US sales were also described as "strong", surging by 19% over the four weeks ending on 11 September for a 17% jump year-to-date on the back of a 24% rise in volumes.
On home shores, sales were down by 4% year-on-year over the four weeks to 12 September, due to strong comparatives, but up from the -14% fall recorded over the prior four-week stretch, with volumes off by 6% but prices 2.3% higher.
Nonetheless, on a two-year basis UK revenues were up by 4% on average.
The analysts left their target price for the shares unchanged at 2,550.0p.
As of 1115 BST, shares of Fevertree were down by 1.66% to 2,430.0p.