- We increase our target price (TP) for FRT by 19% but downgrade our rating from BUY to OUTPERFORM as the company’s share price has rallied ~29% over the last month. 

- Our higher TP is because we increase our valuation for the Long Chau (LC) pharmacy chain by 23% due to (1) increasing our aggregate 2025F-29F sales by 18% as we raise our assumption for LC’s 2029F store count to 3,000 from 2,600 as a result of our more optimistic view about LC’s store expansion capability from now to 2029, and (2) extending our explicit forecast horizon to 2033 from 2032 as previously.

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