Our target price of P$218 per share uses a DCF analysis with a group dollar-based WACC of 8.9% and a terminal growth rate of 1.7%. Our target price implies a FY25E P/E of ~16.5x.

We see the following key risks affecting the achievement of our TP: (1) A sharp depreciation of the Mexico peso would negatively impact our earnings estimates as many input costs are dollar-linked. (2) Pricing flexibility in Mexico may be threatened by competition. (3) In the United States, risks include secular decline in carbonated soft drinks category and delays in capturing synergies.