Primary Recommendation

Fevertree Drinks - Premium tonic water firm eyes $1.2bn US mixer market

March 2019

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

It’s highly unusual for an up-start to smash a coach and horses through a mature industry but Fevertree, a supplier of premium carbonated mixers, has seen eps rise almost vertically with the sheer quantum of forecast upgrades taking our breath away. As an example, a couple of years back analysts had pencilled in eps of 21.5p in FY’18 but following yet another “ahead of expectations” update on 24th January they now expect a whopping 52.2p (i.e. a c.140% upgrade!) in ’18 with 56.5p and 64.6p inked in for FY’19 and ’20.Nervous markets have pulled the shares back to a prospective PE of 46.6, versus the high 60s at their peak and while cautious investors may still view this as too rich, Fevertre ...

To access our archive of articles and to receive current issues you need to subscribe.

Subscribe now

Already a subscriber? Login

Shoe Zone - Shoe retailer to accelerate out-of-town Big Box openings

SSP Group

Fevertree - Chairman acquires 45,000 shares (March 2024)

Fevertree (July 2017)

Fevertree - Shares break to new highs (March 2017)

Fevertree Drinks - Brokers upgrade again (September 2016)

Fevertree Drinks - Purveyor of premium tonic water enjoys multiple eps upgrades (August 2016)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X