Diageo: Credit Suisse downgrades stock
(CercleFinance.com) - The Diageo stock is down nearly 2% in London on Monday, after Credit Suisse downgraded the world's leading spirits company from "outperform" to "neutral".
“We maintain our long-term view that Diageo should benefit from a strong moat and stepped-up innovation capabilities, however we see less favourable risk/reward over the next 12 months,” the broker said.
While Diageo has significant exposure to the US, which is considered a particularly resilient market, the group is currently losing market share there, according to Credit Suisse.
The broker has cut its target price to 2,900 pence, from 3,450 pence previously.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
“We maintain our long-term view that Diageo should benefit from a strong moat and stepped-up innovation capabilities, however we see less favourable risk/reward over the next 12 months,” the broker said.
While Diageo has significant exposure to the US, which is considered a particularly resilient market, the group is currently losing market share there, according to Credit Suisse.
The broker has cut its target price to 2,900 pence, from 3,450 pence previously.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.