Investment broker ING has upgraded its rating on the international brewer Heineken to "buy" from "hold".

The broker's analysts said they expected a recovery in earnings growth in 2005, with the potential for price increases and better weather.

ING also noted continued cost savings and the potential for new products to compete with spirits.

Heineken's shares were rated as undervalued versus peers as well and ING raised the price target to €27.40 from €24.2.