Modest Changes For AmBev, Morgan Stanley Reports

In a report released this morning, Morgan Stanley said that it is Equal-weight on AmBev's ABV shares, “though they remain our preferred way to participate in LatAm Beer.” “We are making modest changes to our operating assumptions and are revising our net income up 6% in 2010 and 2.2% in 2012 to reflect higher interest income resulting from stronger than anticipated cash flow generation (as well as a lower tax rate in 2010e),” Morgan Stanley writes. “We expect AmBev to deleverage significantly by year-end, finishing the year with net cash of ~US$400 million.” AmBev closed Friday at $143.52.