Investment bank Merrill Lynch has downgraded the brewer InBev from "buy" to "neutral".

Merrill Lynch said its EPS estimates on a normalised, fully diluted basis have been cut by 12% to €1.67 from €1.90 for 2005. The 2006 estimate has been reduced by 10% to €1.90.

Merrill added that it had also cut free cash flow per share estimates for InBev by 12-16%.