Our 12-month target price of ChP3,550 is based on a DCF analysis with a ChP-based WACC of 11.2%. At our target price, Andina would trade at a 12m fwd EV/EBITDA multiple of 6.9x and 13.8x 12m fwd P/E.

The main risks to our target price include: (1) a weaker-than-expected macroeconomic outlook in these four countries: Chile, Brazil, Argentina, and Paraguay; (2) accelerating inflation in Argentina affecting beverage consumption; (3) higher-than-expected depreciation of local currencies versus the US dollar, increasing dollar-linked input costs, potentially resulting in translation losses in Chilean peso terms; (4) climate change associated risks; and (5) higher-than-expected price competition from other players.


If the impact on the company from any of these factors differs from our base case expectations, the stock could have difficulties achieving our target price or could increase more than we expect.