Update shared on 26 Nov 2025
Fair value Increased 0.22%Analysts have slightly lowered their price target for Fevertree Drinks, now forecasting a modest decrease from £9.00 to £8.50 per share. They cite expectations of steady revenue growth, moderated profit margins, and a fairly valued share price.
Analyst Commentary
Recent analyst notes highlight balanced perspectives on Fevertree Drinks, reflecting both confidence in certain aspects of the company and reservations about its near-term prospects. The revised price targets and recommendations suggest a market consensus that the shares are currently fairly valued.
Bullish Takeaways
- Bullish analysts acknowledge the company's ability to sustain steady revenue growth despite industry headwinds.
- Continued consumer interest in premium mixers supports Fevertree's long-term brand positioning and market share retention.
- Operational resilience and the ability to maintain a robust supply chain are viewed positively, supporting execution of business strategies.
- Price targets, although lowered, remain above current trading levels. This indicates potential room for modest share appreciation if growth trends continue.
Bearish Takeaways
- Bearish analysts warn that profit margins may remain under pressure due to cost inflation and competitive activity in the beverage sector.
- There are concerns regarding limited upside in valuation. The stock is seen as fairly valued at present price levels.
- Ongoing macroeconomic uncertainty could impact consumer demand and hinder the pace of revenue growth.
- A Hold or Neutral stance reflects caution regarding near-term catalysts that could drive meaningful share price re-rating.
What's in the News
- The Directors declared an interim dividend of 5.97 pence per share, a 2% increase over the 2024 interim dividend. The dividend will be paid on 17 October 2025 to shareholders on the register as of 26 September 2025 (Key Developments).
- A Special/Extraordinary Shareholders Meeting is scheduled for 17 October 2025 at the office of Reynolds Porter Chamberlain LLP in London (Key Developments).
- Fevertree Drinks completed a share repurchase, buying back 6,776,859 shares, representing 5.81% of the company, for £53.6 million between January 30, 2025 and June 30, 2025 (Key Developments).
Valuation Changes
- The Fair Value Estimate has risen slightly from £9.29 to £9.31 per share, indicating a marginal increase in the underlying valuation.
- The Discount Rate remains unchanged at 7.07%, suggesting no adjustment in risk assumptions applied to future cash flows.
- Revenue Growth projections have increased marginally from 11.26% to 11.26% yearly, reflecting a very modest uptick in anticipated sales growth.
- The Net Profit Margin estimate has edged down from 11.10% to 11.09%, showing a fractional decrease in expected profitability.
- The Future P/E Ratio forecast has risen slightly from 31.38x to 31.46x, suggesting a minimal increase in expected earnings multiples.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.