Premium tonic water-to-ginger beer supplier Fevertree Drinks' (FEVR:AIM) astonishing climb continues, the shares fizzing 11.6% higher to 483.75p on another positive update.
House broker Investec Securities pushes through further material upgrades to its earnings forecasts, though the beverages business' valuation looks increasingly demanding.
In an unscheduled trading statement, the globe's leading supplier of premium carbonated mixers for alcoholic spirits by retail sales value, says full-year results will be 'materially ahead' of the board's expectations.
Guided by co-founders Tim Warrillow and Charles Rolls, CEO and executive deputy chairman respectively, Fevertree has continued to perform strongly in the second half of calendar 2015 both at home and abroad, with brisk business 'driven by distribution gain which have come through earlier than anticipated in our existing markets'.
The company is also an export champion, generating the bulk of sales away from UK shores.
Investec upgrades this year's sales forecast by 14% to £54.6 million, driving up its earnings before interest, taxation, depreciation and amortisation (EBITDA) and earnings per share (EPS) estimates by 18% to £16.5 million and 11.1p respectively.
The broker also raises its EBITDA and EPS forecasts for 2016 and 2017 by a chunky 18%.
The fact that the share price has now surpassed the broker's discounted cash flow (DCF)-derived price target of 472p, upgraded from 395p, perhaps poses a question for investors.
Fevertree's valuation certainly looks punchy following a breathless run, with the shares now swapping hands for more than forty times forecast earnings. That said, Shares is in agreement with Investec's 'buy' rating, excited by the growth to come given the brand's growing global traction.