Diageo: shares at all-time high after broker raises target
(CercleFinance.com) - Shares in Diageo rose on Wednesday after a broker raised its target price to reflect the spirits maker's growth potential.
Diageo shares were up 1.4 percent at 2,852 pence in afternoon, hitting a new all-time high.
Morgan Stanley said in a note that Diageo is building a reliable "compounder" status, which should justify a premium to the sector.
"We see further upside potential in the mid-term (USA, Scotch in EM and acceleration in India & Asia) and strong balance sheet optionality," it said.
As a result, the broker has raised its target price from 2,900 pence to 3,100 pence, while keeping an "overweight" on the shares.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
Diageo shares were up 1.4 percent at 2,852 pence in afternoon, hitting a new all-time high.
Morgan Stanley said in a note that Diageo is building a reliable "compounder" status, which should justify a premium to the sector.
"We see further upside potential in the mid-term (USA, Scotch in EM and acceleration in India & Asia) and strong balance sheet optionality," it said.
As a result, the broker has raised its target price from 2,900 pence to 3,100 pence, while keeping an "overweight" on the shares.
Copyright (c) 2018 CercleFinance.com. All rights reserved.