Goldman Sachs analysts downgraded Fevertree Drinks Plc. (LN) (FQVTF) from Neutral to Sell with a price target of GBP10.50 (from GBP10.75).
The analysts comment: " While Fever-Tree's EPS growth algorithm of 18% between FY25-27e remains attractive in our view, we flag that it is mostly driven by easing COGS rather than underlying top-line growth acceleration. We think most investors consider Fever-Tree to be a growth stock, and will see a medium-term organic sales growth algorithm at +7.4% as unattractive in light of demanding valuation on 31x CY25e P/E. We see scope for downside risk to EPS with our FY24/25/26e estimates -3%/-4%/-7% below consensus. We downgrade Fever-Tree to Sell (from Neutral) and reduce our price target to 1,050p (from 1,075p)."