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Fevertree shares fizz on bullish update

Shares were up more than 10% this morning following another bullish trading update

Fevertree tonic water
Fevertree sells premium mixers like tonic water and ginger beer

Shares in Fevertree Drinks PLC (LON:FEVR) gained more than 10% in early deals after the premium drinks mixer brand said it expects its full-year results to top market expectations again.

The group – which makes mixers such as tonic, ginger beer and lemonade – had already upped its full-year expectations once this year following a good start to 2016.

This solid performance has continued into the second half of the year, London-based Fevertree said, with demand in the UK - its largest market - showing no sign of slowing.

Because of this, the firm – which was only founded in 2005 – expects its results for the year to 31 December to come in “materially ahead” of current market forecasts.

This time last year, Fevertree relayed a similar message to investors that it would beat full-year expectations, something it repeated again in April of this year.

The stock has gained more than 500% since it listed two years ago today.

Chris Wickham of Whitman Howard expects positive trading announcements to be an "ongoing feature" for the business with market forecasts likley to underestimate future growth in his opinion.

Wickham reckons the stock has a little more room for growth, too, upping his price target for Fevertree to 1,080p from 720p. 

Shares were up 10% to 1,064p in early deals on Monday.

Quick facts: Fevertree Drinks

Price: 2273 GBX

AIM:FEVR
Market: AIM
Market Cap: £2.64 billion
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