Fevertree Drinks (AIM:FEVR) has retained the backing of Jefferies, which kept its 'buy' recommendation and 1,100p price target after first-half results pointed to stronger US momentum and improving earnings prospects.
The broker viewed the results as early evidence that of the Group's partnership with Molson Coors is beginning to deliver, with US revenue growth reaching 11% at constant currency and sales momentum building as distribution, merchandising and marketing activity expands.
First-half sales of £184.2 million came in slightly ahead of Jefferies’ £182.2 million forecast, while adjusted EBITDA of £20.1 million was also above its £19.5 million estimate.
Jefferies left its 2026 sales forecast unchanged at £400.7 million and EBITDA at £50.1 million, but increased its 2026 EPS estimate by 3% and its 2027 forecast by around 5%, helped by progress with Fever-Tree’s share buyback.
US growth remains the main attraction for the broker, with off-trade sales growth accelerating from 6% in the first quarter to 11% in the second and 16% so far in the third.
Jefferies expects the Molson Coors partnership to support further growth through wider distribution and stronger execution, while local production should improve margins, inventory efficiency and cash generation over the medium term.
The broker also highlighted Fever-Tree’s diversification beyond tonic, with non-tonic products now accounting for 47% of group sales.
