The bank Citigroup has raised its rating of UK-based brewer Scottish & Newcastle from "sell" to "hold". Analysts also increased the brewer's price target from 365p to 415p.

Earnings per share also increased to 32.9 pence from 32.6 in 2005 and to 35.5 pence from 35.2 in 2006.

The bank's analysts said that the increase was based on a rise in confidence that S&N wil succeed in the UK market, thanks to additional supply contracts in the on-trade.