Fevertree Drinks PLC

FEVR
Delayed London Stock Exchange - 06/20 04:46:29 pm
2365.95GBp
+1.63%

The comeback of an upward trend can be anticipated

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Anas Lozach
Analyst

Strategy published on : 06/12/2019 | 03:10

long trade
Stop-loss triggered

Entry price : 2700GBp
Target : 2900GBp
Stop-loss : 2540GBp
Potential : 7.41%

Fevertree Drinks PLC shares could get back into a rising trend over the medium term, as suggested by technical indicators.
Investors have an opportunity to buy the stock and target the GBp 2900.

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 share is getting closer to its long-term support in weekly data, at GBp 2149, which offers good timing for buyers.

● Share prices are approaching a strong support area in daily data, which offers good timing for investors.

● Analysts expect a sharply increasing business volume for the group, with high growth rates in the coming years.

● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.

● 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.

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

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

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

● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.

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


Weaknesses

● The company's "enterprise value to sales" ratio is among the highest in the world.

● With an expected P/E ratio at 43.99 and 38.08 respectively for both the current and next fiscal years, the company operates with high earnings multiples.

● The company is not the most generous with respect to shareholders' compensation.

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