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Fevertree Drinks stock maintains buy rating

EditorAhmed Abdulazez Abdulkadir
Published 06/07/2024, 10:22 AM

On Friday, Deutsche Bank reaffirmed its Buy rating on Fevertree Drinks Plc. (FEVR:LN) (OTC: FQVTF), maintaining a GBP16.00 price target for the company's shares. The endorsement follows Fevertree Drinks' recent annual general meeting (AGM), where the company expressed confidence in meeting its full-year 2024 (FY24) expectations. Fevertree has been experiencing growth across all its regional markets, attributed to new product innovations and the continued momentum of its broader drinks portfolio.

The company's performance in the Rest of the World (RoW) segment has seen a benefit from weaker comparative figures from the previous year. However, it was noted that improvements in this area are not expected to significantly alter the group's overall performance. Deutsche Bank's analysis indicates that while the business has had a solid start to the year, the summer season remains critical for Fevertree's trading success. The bank has chosen not to adjust its forecasts for FY24 following the AGM statements.

Fevertree's current valuation stands at 36.5 times price-to-earnings (PE) and 20.7 times enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) for the estimated FY24. Deutsche Bank views these valuation metrics as attractive, suggesting a positive outlook for the company's financial performance going forward.

The reaffirmation of the Buy rating and the GBP16.00 price target indicates Deutsche Bank's continued confidence in Fevertree Drinks' market position and its potential for growth. The company's innovation strategy and the anticipation of a strong summer trading period contribute to the positive assessment of its stock.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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