Carlsberg's rating has been lowered following its disappointing Q1 figures earlier this week. CSFB has downgraded its coverage of the brewer to 'underperform' from 'neutral' while maintaining a share target of DKK250 each.

CSFB said that the earnings momentum at Carlsberg is likely to be negative as consensus begins to reflect the poor first quarter and significant gap to management guidance. The brokerage also noted that, despite the poor summer weather comparatives in western Europe last year, the brewer's management is forecasting flat-to-declining volume growth for the rest of this year.

Carlsberg's Production Excellence programme is bearing little in the way of margin enhancement, the brokerage highlighted, given the high-re-investment level in marketing and pricing.

CSFB concluded by pointing out that Carlsberg's stock is currently trading at premium on a price/earnings multiple basis to the European brewing peer average.