The US investment bank JP Morgan has cut its recommendation on Mexico's top brewer Grupo Modelo to "neutral" from "overweight".

In a report, Pablo Zuanic, JP Morgan's beverage analyst, said that Modelo had cut its export growth estimates for 2003. He also highlighted a weak pricing environment in the domestic market.

He said: "We now expect 5% percent export growth for the second quarter compared to 14.6% previously."

"In the domestic front we now expect the industry's annual price increase to take place in October 2003 as opposed to July 2003," Zuanic said. "The three-month delay cuts our earnings before interest and taxes (EBIT) growth estimate by 2 to 3 points."

Modelo is half owned by the US beer giant Anheuser-Busch and produces the Corona beer brand.