We derive our SAR 3.2 TP using an average of our EV/EBITDA multiple valuation (expecting the stock to trade at 13x 2025e EV/EBITDA, at a discount to 9M23 multiple) and DCF-based valuation. For DCF, we use a WACC of 9% and TGR of 3% with a terminal year EBITDA margin of c.25%.

Key risks to our investment thesis and TP include: weaker consumer / macro risks; geopolitical instability; higher competition; GLP-1 and regulation risks; and food safety risks.