LONDON (ShareCast) - (Sharecast News) - Goldman Sachs downgraded Fevertree to 'sell' from 'neutral' on Tuesday and cut the price target to 1,050p from 1,075p.
The bank said it expects the posh tonic maker to deliver 6.2% reported sales growth in FY24, below consensus at +7.3% and company guidance at +8%.

"In light of moderating Nielsen data and ongoing Spirits demand normalisation, we expect +15.5% organic sales growth in the US, below consensus at +17%," GS said.

"We are also cautious on the UK growth (+0.3% GSe versus +1.9% consensus), where we note an ongoing softness of Fevertree in the off-trade and weak performance of Cocktail Bar channel."

GS said that while the company's earnings per share growth algorithm of 18% between FY25-27e remains attractive, it is mostly driven by easing cost of goods sold rather than underlying top-line growth acceleration.

At 1120 BST, the shares were down 4.3% at 1,129p.

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