Goldman Sachs Downgrades Fevertree Drinks Plc. (FEVR:LN) to Sell By Reuters
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 16 2024
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Source: Investing.com
- Goldman Sachs Downgrade: Goldman Sachs analysts downgraded Fevertree Drinks Plc. from Neutral to Sell with a reduced price target of GBP10.50.
- Reason for Downgrade: The downgrade was based on the company's EPS growth being driven by easing COGS rather than top-line growth acceleration, making the stock less attractive.
- Investor Perception: Many investors view Fevertree as a growth stock, but the medium-term organic sales growth rate of +7.4% is considered unattractive given the high valuation.
- Potential EPS Downside: Analysts see potential downside risk to EPS estimates for FY24/25/26, which are below consensus.
- Analyst Action: As a result, Goldman Sachs downgraded Fevertree to Sell from Neutral and adjusted the price target downwards.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
