The investment bank UBS has raised its target price for Allied Domecq to 370 pence a share from 340p.

UBS has retained a "neutral" recommendation on the stock.

Meanwhile, JP Morgan raised its fair value target for the drinks company to 380 pence a share from 345p but kept its "underweight" recommendation.

In a note the investment bank said Allied's difficulties in matching supply to demand were a concern.

"Until there is more reassurance as to the exact position on the stock levels then this will probably lead to higher risk being attributed to forecasts," it said.