UPDATE: Deutsche Bank Downgrades Ambev to Hold

Deutsche Bank has published a research report on Ambev

and had downgraded the company from Buy to Hold based on the company's valuation grounds. In the report, Deutsche Bank writes, "[Ambev's] expected total return of 2% (despite a 5% upward target revision, to $39/ADS) no longer justifies a Buy rating. AmBev shares have had a remarkable run since late 2008. After what we expect will likely be a short-term cooling-off period, we believe they could resume their upward trajectory (albeit at a more moderate pace). Our estimates are unchanged pending the 4Q11 release (8 March), but in any event we believe most potential positive surprises are already in." Deutsche Bank has raised the price target from $37.25 to $39 on Ambev, which is currently trading up $39.88 from yesterday's $39.51 closing price.