Interactive Investor

The future for Fevertree shares and the AIM market

16th November 2021 07:34

Alistair Strang from Trends and Targets

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Both the AIM market and its third-largest company have enjoyed success since the pandemic lows, but will it last? Independent analyst Alistair Strang stirs the tea leaves. 

The immediate situation for Fevertree Drinks (LSE:FEVR) appears pretty straightforward, above 2,700p suggesting further price movement to an initial 2,950p.

If that's bettered, life gets more interesting as our longer-term secondary calculates at 3,640p. Unusually, we can also provide a third level ambition at 3,958p, virtually identical to their previous all time high three years ago.

For everything to go wrong, the share price needs below 2,450p to force us to revisit all the numbers.

    Source: Trends and Targets. Past performance is not a guide to future performance

    The AIM market

    It used to be the case where we always thought the FTSE100 was the respectable place to trade, while the AIM was cowboy central. Recent years has seen the AIM provide a remarkable turnaround and, nowadays, it’s the FTSE100 deserving sideways glances.

    For instance, around the world, most international indices have cheerfully exceeded their level prior to the Covid-19 drop in 2020. In the case of the AIM, it was around 970 points and is presently trading around 1,250 points.

    The FTSE, of course, remains trading below its pre-pandemic figure, gradually improving but, when compared to AIM in the performance stakes, is still in quite a dreadful position.

    Source: Trends and Targets. Past performance is not a guide to future performance

    The immediate position with AIM is fairly interesting as above 1,260 points suggests imminent movement to 1,285 points. If exceeded, our longer-term ambition calculates at 1,353 points, a really big deal and taking the market to levels not seen for 20 years.

    At present, we’d experience concerns should this market discover an excuse to slump below 1,150 points but, to be fair, the visuals suggest this is unlikely. Perhaps it’s the case some members of AIM, such as Fevertree above, shall continue to strengthen simply thanks to the strength of their parent market.

    Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

    Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

    These articles are provided for information purposes only.  Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties.  The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

    Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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