Davy Morning Equity Briefing
Feb 03, 2026
AG Barr
Resilient finish to FY26 and constructive tone into FY27
AG Barr delivered a resilient performance, with full year sales growth of 4% (H1: 3%, H2: c.5%), driving a full year outcome broadly in line with consensus expectations and a healthy exit into FY27. The FY26 adjusted operating margin of c.14.7% reflects the continued delivery of self-help initiatives, offsetting meaningful reinvestment across the business. AG Barr has also announced two strategic acquisitions, consistent with its targeted M&A strategy to support growth through the broadening of its brand portfolio. At first look, we envisage limited changes to our forecasts.
Flutter Entertainment plc
What is priced in?
Ahead of Flutter’s FY25 earnings, we update our forecasts. Q4 forecasts for the US come down but remain within the guidance range as the well-publicised handle softness impacted. A key question on investors’ minds is whether Prediction Markets (PM) are impacting current regulated sports betting. We believe the recent share price weakness implies structural challenges to the business arising from Prediction Markets. However, we believe the recent weakness in handle relates to a confluence of short-term factors as opposed to any transformational structural change in the prospects for regulated sports betting. If we are correct, current levels provide a compelling entry.
