AG Barr is a leading UK beverage producer with a clear strategy for growth across its multi-brand portfolio including IRN-BRU, Rubicon and Boost. Revenue growth has reaccelerated to 5% in H226 and, with high operating margins of c.15% and excellent cash conversion, the group is well placed to grow organically and through acquisition. As recently announced, the group has acquired the complementary brands Fentimans and Frobishers for a combined £51m, adding potentially c.10% to group revenues. In this detailed report we review the attractive investment thesis for AG Barr and conclude that successful execution of management’s strategy will drive a further rerating. We initiate coverage with an 800p Fair Value estimate, equating to 1.7x EV / Revenues, c.16x PER and a c.4.5% FCF yield (cal 2027).