US investment bank JP Morgan has started coverage of the Italian drinks group Campari with a "neutral" recommendation, saying the shares were fairly valued.

The broker said that it was expecting organic sales growth of 4.3% and organic trading profit growth of 7% over the next three years. It added that this was fully reflected in the current rating.

JP Morgan explained that traditionally, Campari has traded at a discotunt to larger rivals such as Diageo and Allied Domecq. However, it said that Campari's stock had risen 22% in the 12 months and the valuation gap has been closed.