The investment bank Morgan Stanley has restated its ratings on two of Europe's largest brewers. Its analysts said that Dutch brewer Heineken had been upgraded to "overweight" from "equal-weight" and the UK brewer Scottish & Newcastle had been re-rated to "underweight" from "equal-weight". Morgan Stanley analyst Alex Oldroyd said: "We expect 2003 to be more challenging for drinks companies. While we expect good organic growth despite a tough consumer environment, reported results will be held back by currency, pensions and various one-off factors."

The bank said “its top picks in the sector Diageo, rated at "overweight", and Heineken.” Its least-preferred stocks are Carlsberg, Remy Cointreau and Scottish & Newcastle, all rated at "underweight".

22 January, 2003