MEXICO: Grupo Modelo has share coverage upped

By just-drinks.com editorial team | 13 September 2007

Grupo Modelo has had its share coverage lifted.

UBS said yesterday (12 September) that it has raised its rating of the Mexican brewer to 'neutral' from 'sell'. The broker noted that Modelo had suffered this year due to competitive issues and the economic slowdown in the US.

In a report, UBS said: "We believe these concerns are priced in after the recent weakness in the shares, leaving investors with a more balanced risk-reward picture."

Earlier this summer, Banamex reduced its rating for Modelo to 'hold' from 'buy'. The broker cited uncertainty about a possible merger between InBev and Anheuser-Busch, which holds a 50% stake in Modelo.

Sectors: Beer & cider

Companies: Modelo, InBev, Anheuser-Busch