Deutsche Bank upgrades Diageo to 'hold'
Deutsche Bank upgraded on Monday to 'hold' from 'sell' as it said that its unchanged price target of 2,020p now suggests just 6.6% downside.
The bank noted that since it downgraded the drinks company to 'sell' on 29 June 2022, the shares have fallen 42%, underperforming the Stoxx Europe 600 food and beverage index by 31%, the Stoxx Europe 600 by 55% and the FTSE 100 by 52%.
"As we have argued throughout, we believe Diageo is fundamentally one of the best positioned companies in European Staples," Deutsche said.
"However, we believe this is broadly balanced by a combination of near term risks and potential structural headwinds at this level."
At 1038 GMT, the shares were down 0.5% at 2,152p.
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.