Deutsche Bank lifts target prices for Britvic and Diageo

"Brewers and soft drinks offer an attractive combination of resilient demand and cost tailwinds," Deutsche Bank said.

"Spirits face greater cyclical risk, inventory overhang and have less input cost benefit yet continue to be more fully valued despite underperformance. After two years of material input cost headwinds we expect 2024 to be a year of input cost deflation and see this as a significant tailwind for brewers and soft drinks players if pricing holds - as it has in the past."

The bank rates Carlsberg and Campari Group as its key 'buys' across its European coverage.

As for UK-listed stocks, soft drinks group Britvic is rated a 'hold', though its target price has been lifted from 865p to 870p. A 'sell' stance was maintained for Smirnoff and Baileys owner Diageo, but the target price rose from 2,920p to 2,950p.