Foster's Group has had its rating upgraded from'sell' to 'neutral' by Macquarie Equities, with the investment bank saying the wine and beer group was once again fair value after it underperformed in the S&P/ASX 100 index during the beginning of the year.
 
The bank unit said today (21 June), that it has a 12 month price target on the stock at AU$6.61 (US$5.6) a share.

Foster's brewing business should enjoy a steady growth, while its wine business is recovering from a disappointing performance since its acquisition of the wine company Southcorp two years ago, according to Macquarie.

The bank added that it expects Foster's to report an annual net profit of AU$1.026bn (US$0.868bn) down from last year's figure of AU$1.661bn (US$1.41bn).