Barclays upgrades Britvic to 'overweight'

Barclay has upgraded its stance on the shares of Britvic and lifted its target price by 10%, saying the "stars are aligning" for the soft drinks maker.

The bank has raised its rating from 'equal weight' to 'overweight', and hiked its target price from 1,000p to 1,100p.

Britvic said back in July that trading in ts third quarter had been "strong", with revenues up 9.9%, helped by positive price/mix and volume growth. This raised year-to-date revenue growth to 8.6%.

The company also announced two acquisitions: Jimmy's Iced Coffee in the UK, and Extra Power in Brazil.

"In the wake of COVID and inflation disruption to the implementation of Britvic's new growth strategy, we now see headwinds clearing and identify multiple top-line and margin drivers that can deliver accelerated growth," Barclays said in a research report on Tuesday.

"Our updated forecasts are 4%+ ahead of consensus from FY24E onwards."