Diageo: share rises on BofA upgrade

(CercleFinance.com) - On Thursday, Diageo shares were one of the biggest risers on the FTSE 100 index, buoyed by a note from Bank of America, which upgraded the stock to buy.


At lunchtime, the share price was up 2.5%, while the FTSE rose 0.7%.

In a research note, the US investment bank says that the British spirits group's earnings momentum is gaining new impetus, with growth set to improve in FY 2024/2025.

For the current financial year, the New York-based firm says it does not rule out pleasant surprises, both in organic growth and earnings, believing that the group's offering remains attractive.

For the medium term, BofA believes that Diageo is in a position to generate 5% growth in sales and 6% growth in EBIT.


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