UBS has raised its rating on Davide Campari-Milano.

The broker said yesterday (21 January) that it has upped its rating on the Italian spirits company from 'neutral' to 'buy' and cut its target price from EUR8.20 to EUR7.40.

UBS added: "Campari was one of the weakest performers in Euro beverages in 2007, underperforming the Eurotop 300 by minus 14% and sector by minus 21%.

"We believe this now offers a buying opportunity."

In November, Campari said that operating profit for the first nine months of 2007 was up by just 3% year-on-year at EUR128.8m (US$189.2m) while net sales lifted by 2.8%, reaching EUR644.6bn.