We have updated our estimates for KOF and FEMSA to incorporate the solid 2Q21 results, structural changes in Brazil benefiting KOF, and FEMSA’s latest acquisitions. We now project EBITDA CAGRs 20-25e of 5.3% for KOF and 9.3% for FEMSA, and we have set YE22e TPs of MXN139.5 and MXN207.0, vs. MXN120.0 and MXN192.5 for YE21e, respectively. We reiterate our Outperform recommendations for both names on the back of the projected operating expansion, short-term tailwinds and the possibility of non-organic expansion fuelled by the balance sheet strength at both names; all of these despite the stretched valuations.