UBS has upgraded its rating on Britvic from 'neutral' to 'buy', due to the perceived underperformance of the shares suggesting a buying opportunity.

UBS said today (21 August) that the shares have de-rated from a high of 17 times forward price-earnings in May to 12.6 times.

The broker said that Britvic's recent underperformance has been driven by both poor weather and uncertainty about Permira's status as a 14% shareholder in light of credit market volatility. Consequently, it has cut its price target for Britvic from GBP4.40 to GBP3.90.

UBS added that it has downgraded sales estimates by 1% this year and operating profit by just 0.2% to GBP80.9m.