Fevertree Drinks PLC

FEVR
Delayed London Stock Exchange - 09/17 10:50:14 am
2300GBp
+0.52%

A good timing to anticipate a change in the trend

Envoyer par e-mail
David Meurisse
Contributor / Partner

Strategy published on : 02/05/2019 | 09:19

long trade
Stop-loss triggered

Entry price : 2603GBp
Target : 2945GBp
Stop-loss : 2470GBp
Potential : 13.14%

The technical chart pattern of Fevertree Drinks PLC shares shows signs of a reversal that argue in favor of a return to a positive outlook over the medium term.
Investors have an opportunity to buy the stock and target the GBp 2945.

Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

● The company has solid fundamentals for a short-term investment strategy.


Strengths

● The prospective high growth for the next fiscal years is among the main assets of the company

● The group's activity appears highly profitable thanks to its outperforming net margins.

● Thanks to a sound financial situation, the firm has significant leeway for investment.

● The group usually releases upbeat results with huge surprise rates.

● Over the last 4 months, analysts have significantly revised upwards the company's estimated sales.

● Over the last twelve months, the sales forecast has been frequently revised upwards.

● For the last few months, EPS revisions have remained quite promising. Analysts now anticipate higher profitability levels than before.

● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.

● Analysts covering this company mostly recommend stock overweighting or purchase.

● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.


Weaknesses

● Based on current prices, the company has particularly high valuation levels.

● With an expected P/E ratio at 51.45 and 44.93 respectively for both the current and next fiscal years, the company operates with high earnings multiples.

● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.

● The technical configuration over the long term remains negative on the weekly chart below the resistance level at 2924 GBp

Zonebourse.com 2019
Envoyer par e-mail