Compania de Bebidas das Americas (AmBev) preferred stock has appreciated significantly since our previous company news alert dated, dated 04 September 2009, reflecting a reduction in country risk premium, upgradation of the company’s foreign currency issuer rating and broader market movement. Furthermore, we expect robust growth in Brazil beer volumes to drive full-year revenue growth over the next two years. In light of these factors and a positive outlook for Brazilian economy, although the target price does not support a HOLD, we reiterate the preferred stock a HOLD. We will reassess our target price and rating in our 3Q 09 update report. Given the current price and our anticipation of a negative currency impact on the ADR over our 6-24 months investment horizon, we downgrade the ADR from a HOLD to a SELL. We will reassess our target price and rating in our 3Q 09 update report.

From September 2009, the Research Oracle will begin to accept research submissions from readers – whether amateur or professional analysts – from around the globe. To receive notification of the launch and rules, contributors may register now at
http://www.iirgroup.com/researchoracle/researchoracleaward