Opinions are divided among City folk about gin mixer manufacturer Fevertree Drinks (AIM:FEVR) ahead of a trading update.
Barclays is bullish, expecting the update to confirm decent underlying trends since the half-year statement, with the US reflecting a steady improvement in market research data.
Key, however, will be margin guidance, adds the broker, with benefits from the on-shoring of bottling in the US to be offset by higher energy costs.
Barclays is forecasting sales of £361mln in 2022, in the middle of company guidance, and underlying profits of £39.7mln, again a median figure in the company range.
Fevertree shares have endured a tough twelve months shedding more than 60% of their value, but Deutsche Bank reckons there is more pain to come.
The German bank recently cut its rating to 'sell' due to how it stands on general industry trends, notably demand pressure/resilience, cost pressures and self-help.
Recent reports, meanwhile, suggesting the recent craze for craft gin (and exotic mixers) might be on the wane will not help sentiment.
Shares were down 0.3% today at 1,121p.