Allied Domecq has had its shares downgraded. JP Morgan has shifted its recommendation for the shares to 'neutral' from 'overweight.' The US broker pointed to the fact that AD shares had out-performed the Eurotop 300 by 6.4% in the last 12 months.

With no near-term upside to its forecasts, JP Morgan said, the strong trading fundamentals are now priced into the current share price. An acceleration in organic growth rates in either the core trading areas of the European Union or the US, or improving profitability in Mexico or South Korea, would be needed for a further re-rating, the broker added.

JP Morgan maintained its 540 pence price target on the drinks company's shares.