DAVY VIEW

AG Barr has entered FY27 with good momentum and expects to deliver double-digit % revenue growth, supported by its recently announced acquisitions. Over the medium term, AG Barr expects to deliver revenue growth of ‘≥4%’, an ambition that stands out in a more challenging growth environment. Group operating margin will remain within its guided 14-16% range, with progress supported by ongoing operational efficiencies, disciplined cost management and synergy delivery. We believe the recent share price weakness creates a favourable investment opportunity and maintain our ‘Outperform’ rating and £8.15 price target.