The investment bank, Credit Suisse First Boston (CSFB), has raised its rating on Pernod Ricard from "neutral" to "outperform" and is recommending a switch to the stock from Allied Domecq.

CSFB said the French drinks group should have a strong first half for 2003 given favourable comparisons and should also see an end to its overstocking problems. The bank added that Pernod's margins were also likely to be ahead of market estimates when full-year profit figures are announced in March. CSFB is expecting a solid fourth-quarter performance and annual sales figures which will be announced on February 12.