Broker Danske Equities has raised its recommendation on brewer Carlsberg from "hold" to "buy", because of good growth prospects.

IN a research note Danske said: "Given our expectations of above sector average earnings growth, we believe valuation, both absolute and relative, appears rather undemanding."

"We believe Carlsberg Breweries will deliver an above sector average earnings growth in the coming years," Danske said, forecasting operating profit (EBITA) growth of 16 percent, 17 percent and 11 percent per year in 2002, 2003 and 2004 respectively.

"Carlsberg Breweries' large exposure to emerging markets should drive medium to long-term growth," Danske said, adding Russia and Carlsberg's Asian business would also be key long-term growth drivers.