Embotelladora Andina S.A. (Andina) common stock achieved our target price on 22 December 2009, reflecting the company’s strong fundamental outlook and an increase of 5.8% in the Chilean stock exchange. Going forward we expect Andina to register y-o-y growth in FY 2010, driven by an increase in volumes and Average Selling Price (ASP). Furthermore, we expect Chilean and Brazilian operations to register expansion in operating margin in FY 2010. Although, we have a positive outlook on the stock, since the current price supports a HOLD rating we are downgrading the common stock from a BUY to a HOLD and will reassess our target price and rating in our next update report, once the company issues its 4Q 09 results. We reiterate the ADR a BUY as we expect a significant positive currency impact on the ADR over the medium term. We will reassess our target price and rating in our next update report, once the company releases its 4Q 09 results.

From September 2009, the Research Oracle will begin to accept research submissions from readers – whether amateur or professional analysts – from around the globe. To receive notification of the launch and rules, contributors may register now at
http://www.iirgroup.com/researchoracle/researchoracleaward