All of Fevertree’s overseas regions beat Bereneberg’s expectations, with the US achieving 55% growth, Europe 39% and the Rest of the World 88%.
“Following the company’s end-of-year trading update, our EPS estimates increase by 13%/11%/11% for 2016/17/18E respectively.
"Looking to this year, we forecast 20% sales growth, which our analysis suggests is almost entirely driven by the lapping effect of distribution gains made during 2016.
"Therefore, if Fevertree can generate strong rate of sale growth or add more distribution points, this could lead to upgrades."
Buy with a 1,325p target is Berenberg’s view.