Fever-Tree, once a stock market darling, languished in the red, suffering from another hangover.
Founded in 2004, the stylish tonic maker listed on the London Stock Exchange in 2014, where its share price soared.
Retail investors bought Fever-Tree, encouraged by the British who for years had to make do with Schweppes.
But by the end of 2018 the dream had soured and the analyst community was wondering where the next stage of growth would come from.
Yesterday, in the first session after the holiday weekend, Goldman Sachs said it was time to sell the stock as the investment bank lowered its outlook.
Failing: Yesterday, in the first session after the holiday weekend, Goldman Sachs said it was time to sell Fever-Tree shares, as the investment bank lowered its outlook.
The investment bank warned that sales are likely to slow in the United States due to lower demand for spirits.
Goldman expects the company, which makes tonic water, ginger beer and cocktail mixers, to see weaker sales on both sides of the Atlantic.
Fever-Tree’s largest market is the United States, which accounts for almost a third of the group’s revenue.
Analysts said sales would rise 15.5 percent this year, below market forecasts of 17 percent.
The broker added that his bleaker outlook is because demand for spirits in the US remains “moderate.”
And Fever-Tree is also likely to struggle in the UK, according to the investment bank.
It has forecast sales to rise by 0.25 per cent in 2024 (less than market predictions of 1.9 per cent) due to weaker trade in cocktail bars and lower demand for gin. The shares sank 4.4 per cent, or 52 pence, to 1,128 pence.
Stock market surveillance: big technologies
Smart label monitoring company Big Technologies has warned that its first-half sales are likely to be lower than a year earlier.
The company, which makes electronic devices used by hospitals and police forces to track people’s movements, said its sales were stable at £18.5m in the four months to the end of April.
The company has been hurt by a contract in Colombia that ends in June once the client begins working with a new supplier.
The shares fell 1.8 per cent, or 3p, to 167p yesterday.
The FTSE 100 fell 0.8 per cent, or 63.41 points, to 8,254.18 and the FTSE 250 fell 0.3 per cent, or 65.66 points, to 20,705.27.
Ocado soared 9.8 per cent, or 36.6p, to 410.4p to lead the blue-chip index.
The rise was still some way off when the online supermarket’s shares rose more than 30 percent in June last year amid speculation that Ocado could be attacked by Amazon or another US technology company.
A bidder has abandoned its bid to buy shopping center operator Capital & Regional less than a week after it expressed interest in taking it private. South African competitor Vukile, which submitted its proposal on April 19, said it had failed to reach an agreement on the structure of a potential bid with Growthpoint, the company’s largest shareholder.
Consequently, it no longer intends to make any offer. But the shares rose 0.7 per cent, or 0.4p, to 60.2p.
Private equity giant Intermediate Capital more than doubled its profits to almost £600m in the year to the end of March, while assets under management rose 23 per cent to £77bn (98.4bn). millions of dollars).
It came despite the group warning that the investment environment is “volatile”. The shares added 3.2 per cent, or 74 pence, to 2,394 pence.
Persimmon is considering a £1bn takeover of a rival housebuilder.
The blue-chip firm could bid to buy Cala Group, owned by Legal and General, this week, Sky News reported. The shares fell 3 per cent, or 44.5 pence, to 1,436.5 pence.
JD Sports assured investors that its annual results should be in line with its guidance set at the end of March. The shares gained 4.9 per cent, or 6p, to 127.45p.
