Will Fevertree continue falling, or will it rise again back to 3200p highs (+45%)?

• Shares down 32% from April highs; down 5% today
• Now trades 2207p (at time of writing).
• Can the stock recover to recent 3200p highs (+45%)?
• Shares -32.6% from 2019 highs; +4.9% from 2019 lows; +1% year-to-date.
• 24 May: Attractive medium-term growth story says Jefferies
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Fevertree – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards April highs of 3200p. You decide to buy exposure to £10,000 worth of Fevertree using a CFD, at the current price of 2207p. To do this, you need £2,000.

Let’s assume Fevertree recovers back to 3200p April highs (+45%). Your profit would be £4500 from your initial investment of £1200.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Fevertree falls 5% and hits your stop-loss. Your loss would be £500.

This is provided for information purposes only. It should not be taken as a recommendation.