By Michele Maatouk
Date: Friday 22 Jul 2022
LONDON (ShareCast) - (Sharecast News) - RBC Capital Markets downgraded tonic maker Fever-Tree on Friday to 'underperform' from 'sector perform' and slashed the price target to 700p from 1,600p.
"Headwinds are accumulating against the top line and our industry contracts are increasingly bearish on the US," it said.
"In addition, we no longer have any confidence margins will improve in the near-term."
RBC said Fever-Tree's 2021 margin was actually in line with other soft drink peers.
Fever-Tree shares tumbled last week after a profit warning, as it downgraded its EBITDA guidance for the year to between £37.5m and £45m, from previous guidance of £63m to £66m.
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