Citi increased its price target for Britvic shares after the soft drinks group’s first-half results beat expectations.
The maker of Tango, Robinsons and mixers reinstated its dividend on Tuesday and reported revenue ahead of forecasts. Britvic also said the second half had started well.
Citi increased its forecast for second half organic revenue by £20m and upgraded its estimate for annual earnings per share by 1%. Co-packing costs and increased investment in the second half left Citi’s estimate for full-year margins broadly unchanged.
The bank stuck to its ‘buy’ rating and increased its price target for Britvic shares to £10.70 from 980p. It noted “encouraging momentum” with “all eyes on reopening trajectory” after restrictions on UK restaurants and bars were relaxed.
