- We lower our target price (TP) for SAB by 6% but maintain our BUY rating.

- Our lower TP is driven by our 9% cut in target P/E (from 23.9x to 21.7x), partially offset by our 3% higher 2024F EPS projection. Our lower target P/E is due to our cut in SAB’s NPAT-MI 2023-28F CAGR from 8% to 6%. We cut our 2024-2028F aggregate NPAT-MI forecast by 4% (respective changes of 3%/0%/-2%/-8%/-10% in 2024/25/26/27/28F) as we lower our aggregate 2024-2028F beer sales volume assumption by 3%. We expect a slower beer consumption recovery caused by the current prolonged strict enforcement of drunk driving laws in Vietnam.

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