Morgan Stanley has cut its rating on InBev from 'overweight' to 'equal-weight'.

The broker said yesterday (23 April) that the decision was due to it expecting a weakness in beer volume in Brazil to weigh on InBev's unit, AmBev's first quarter results.

The broker, which has now cut its target price for InBev to EUR65 (US$102), said that AmBev's drop in market share in the country last month, combined with cost pressures and a potential earnings disappointment, contributed to the rating shift.