Deutsche Bank lifts Fevertree price target

(Sharecast News) - Deutsche Bank lifted its price target on Fevertree on Friday after the posh tonic maker's interim results a day earlier. The bank hiked the price target to 840p from 800p but maintained the rating at 'hold' as it said the US transition is going well but the rating reflects this.

Deutsche noted that the transition to Molson Coors' national network of around 400 regional distributors, servicing circa 50,000 accounts, started in June.

"This transition is progressing well with the focus in 2H 25 moving to servicing On-Trade and Liquor customers and the handover of relevant Retail customers," it said, adding that diversification continues. "The broader product portfolio, beyond tonic, including ginger beer and premium soft drinks, is delivering strong growth and now represents 45% of group revenues," DB said.

"This diversification strategy has led to a 16% 3-year compound annual growth rate for the broader portfolio," it said, highlighting the company's strong cash position.

"Cash from operations was £12.1m, down from £25.4m LY. The company indicated that it expects a material improvement in cash generation in 2H 25 and beyond reflecting the reduced w/cap requirements of the US business."

At 1430 BST, the shares were up 3.7% at 904p.