Broker Danske Equities has raised its recommendation on brewer Carlsberg from "hold" to "buy", on the assumption of good growth prospects. "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… Carlsberg Breweries' large exposure to emerging markets should drive medium to long-term growth," Broker Danske Equities said.

They forecasted a growth of operating profit (EBITA) of 16%, 17% and 11% per year in 2002, 2003 and 2004 respectively. Danske assert that Russia and Carlsberg's Asian business will also be key long-term growth drivers.

16 December, 2002