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Barr (AG) (BAG) £12.28

Irn Bru and Tizer drinks maker AG Barr said its business should ride out any downturn in the economy after seeing a 27% rise in profit. (Read the full story: www.sharesmagazine.com/node/3807)

Shares says: The soft drinks market remains a competitive industry, which has prompted AG Barr to wide its product range. This includes entering the sports drink market. The loss of a can products contract with Marks & Spencer is not good – resulting in a £1.7 million reduction in sales – but it hopes to offset this negative factor with a new deal with the supermarket. AG Barr needs a sunny summer to ensure a solid boost to earnings. The company has a good level of cash and has started the year off well. BUY

The Independent says: The soft drinks sector toiled in last year’s disappointing summer weather, but AG Barr, maker of Irn Bru and Lipton Iced Tea, bucked the trend with rising profit and had analysts lining up to recommend the stock. Trading figures from the first three months of 2008 are encouraging, with sales up 3% on the same period last year. The firm is always under the threat of legal changes that could mean alterations to labelling, or even the contents of drinks. Moves to combat obesity may hit demand for its sugary drinks, such as Orangina, but the firm does make healthier mineral water drinks too. BUY

The City - Investec says: While predicting the UK summer weather is a fool’s game, we can hope that it will be no worse than last year. New additions to the portfolio should also assist in driving sales and price inflation could be a factor as higher glass and aluminium prices are passed through. We are looking for 5% sales increase for 2008/09. BUY