Broker snap: Catalysts limited at Britvic, says UBS

19th Sep 2011 12:28

UBS has cut its target price from 380p to 325p for soft drinks group Britvic, saying that despite the undemanding valuation, catalysts are limited.The target price downgrade is to reflect the following headwinds: "(1) further pressure on cost of golds sold (COGS) into 2012 despite high single digit inflation in 2011; (2) poor summer weather in UK; (3) ongoing weak consumer environment in key markets; and (4) proposed tax on sugary drinks in France," the broker said.In regards to the weather, UBS notes that UK summer weather has been overall below 2010 and its long-term average "leaving limited scope for Britvic to surprise" in its full-year results.A neutral rating is kept.By 12:28 on Monday, shares were trading 2.27% lower at 302p.BC