Investment bank Merrill Lynch has lifted its rating on brewer Inbev to "buy" from "neutral".

The bank's analysts also increased its share target to €33 from €27.

Merrill said it had renewed confidence in the brewer's capacity to generate value for its ordinary shareholders.

"The moves that InBev's management has made to reduce the leakage of value to minority and debt holders (such as the buy-backs) and from the realisation that the overall value coming from AmBev is substantially more than expected as recently as 3-4 months ago," Merrill said.