AG BARR's house broker has highlighted its view that the Irn-Bru manufacturer has "never been in better shape", writes Ian McConnell.
Investec, in a research note yesterday on AG Barr entitled 'Turning white space orange', Investec highlights a number of "growth drivers" that, it says, should help AG Barr continue to outperform a potentially flat UK soft-drinks market.
It adds: "These include taking the Irn-Bru brand national, after its success in the north of
England, looking at international opportunities through distribution agreements, pursuing new consumption occasions through innovation, or finding niche acquisitions such as Funkin."
AG Barr announced its acquisition of Funkin, a London company operating in the cocktail mixers market, for up to £21 million back in February.
Investec, upgrading its recommendation on AG Barr shares from "add" to buy" with a target price of 737p, said: "It may be a tough backdrop in UK FMCG (fast-moving consumer goods), but in our view Barr has never been in better shape."
Shares in AG Barr dipped by 7p to 633.5p yesterday.
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