Fevertree Drinks Plc

FEVR
Delayed London Stock Exchange - 10/18 05:35:08 pm
2125GBp
-1.94%

Back on a long term support level

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Marie-Léa Laignel
Data Analyst

Strategy published on : 10/07/2019 | 09:49

long trade
Live

Entry price : 2183GBp
Target : 2585GBp
Stop-loss : 2070GBp
Potential : 18.42%

The decline over the past weeks has brought the price of Fevertree Drinks Plc shares back to an important technical support level at 2149 GBp. This represents an opportunity to take advantage of these prices levels.
Investors have an opportunity to buy the stock and target the GBp 2585.

Summary

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


Strengths

● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at GBp 2149 GBp in weekly data.

● Growth progress expectations are rather promising. Indeed, sales are expected to rise sharply in the coming years.

● 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.

● Considering the small differences between the analysts' various estimates, the group's business visibility is good.

● Historically, the company has been releasing figures that are above expectations.

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

● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.


Weaknesses

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

● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 39.33 times its estimated earnings per share for the ongoing year.

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

● For the last four months, the sales outlook for the coming years has been revised downwards. No recovery of the group's activities is yet foreseen.

● For the last four months, EPS estimates made by Standard & Poor's analysts have been revised downwards.

● The technical configuration over the long term remains negative on the weekly chart below the resistance level at 2591 GBp

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