Fevertree Drinks upgraded to Sector Perform from Underperform at RBC Capital

RBC Capital upgraded Fevertree Drinks to Sector Perform from Underperform with a price target of 1,300 GBp, up from 1,000 GBp. The firm says its confidence in both the company’s visibility and recovery of gross margin is “much improved.” However, localizing U.S. production will prevent a complete margin turnaround pending conviction around materially higher revenue growth potential, the analyst tells investors in a research note.