Leo Venezuela Value Quotations

Although San Miguel B has fallen 12 percent from its peak in July last year, we believe that the issue is still far from our 69 pesos fair value target.

While the counter still trades at a discount to our 16.5 times market price-earnings ratio, its current premium over our fair value estimate and strong price appreciation over the past few months suggest that the issue has temporarily outrun its fundamentals, with no further upside in the next 12 months.