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Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Keep buying AG Barr as latest update is very encouraging

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Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
AG Barr (BAG) 437.21p
Loss to date: 12.5%
Original entry point: Buy at 499.5p, 7 May 2020
We said to buy the Irn-Bru maker in May, believing that its share price didn’t warrant being so low. A new trading update confirms that the initial lockdown period wasn’t good for sales, which shouldn’t be a surprise. More encouraging is news that sales from both the hospitality sector and consumers ‘on the go’ are starting to pick up.
Anyone investing should really take a long-term view of a business and not simply base their decision to buy or sell on just a few months’ trading.
AG Barr continues to generate positive cash flow and we have faith in it getting through the current difficult period.
Liberum says the 8% decline in first-half revenue to £113 million was much better than its forecast for £94.6 million in sales. ‘The material beat versus our expectations appears driven by a strong performance in the impulse channel as AG Barr helped independents navigate the shift to take-home occasions from immediate consumption,’ says the broker.
Assuming there are no major flare-ups of the virus in the UK, Liberum believes AG Barr could think about restarting dividends when it reports half-year results on 22 September. ‘The share price fall (-25% year to date) is at odds with this strong update,’ it adds.
SHARES SAYS: AG Barr is getting back on its feet so use the ongoing share price weakness as a reason to buy more shares as a long-term investment.
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