LONDON (ShareCast) - (Sharecast News) - Citi cut its price target on Fever-Tree on Friday to 950p from 1,115p citing slight model changes and an adjustment to its price-to-earnings valuation method.
The bank maintained its 'neutral' rating on the shares into the first-half results.

"Poor weather across much of Europe, particularly in June is likely to have tempered H1 momentum for Fever-Tree," it said.

"While US trading is expected to have been resilient and Rest of World should see a strong rebound on soft destocking comps in Australia, the tougher backdrop in Europe leaves our H1 OSG estimate at +2.1%."

Looking ahead, Citi said it sees better weather across Europe in July as supportive for current trading, while ongoing tailwinds from 2024 pricing and lower freight costs are likely to fall more heavily in the second half.

"As such, with an H2-weighted delivery, we believe FY24E guidance metrics remain intact," it said.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE