Analysts at Bear Stearns have upgraded the Mexican brewer Grupo Modelo to "outperform" from "peer perform" as the economic conditions around the brewer improve.

Modelo also saw its price target increase to 32 pesos per share from 34 pesos.

In a report Bear Stearns said: "A year ago we worried about lack of pricing for Modelo in the U.S. and Mexico as well as peso weakness and Mexican competition for which Modelo's response was uncertain. These conditions are improving as we go into 2004."