Diageo: Deutsche Bank upgrades to 'hold'.

(CercleFinance.com) - Deutsche Bank announced on Monday that it had upgraded its recommendation on Diageo from 'sell' to 'hold', believing that the level of risk associated with the stock had been significantly reduced by its recent downturn.


Since we downgraded the stock on June 29, 2022, the share price has lost 42% of its value, underperforming the STOXX Europe 600 Food & Beverage index by 31%, the STOXX Europe 600 by 55% and the FTSE 100 by 52%", recalls the analyst.

While it considers that the British spirits group remains one of the best-positioned players in the European FMCG market from a fundamental point of view, the research firm believes that this status is counterbalanced by the risks surrounding the business in the short term and the structural difficulties that may lie ahead.

Its unchanged price target of 2020 pence shows a limited downside potential of 6.6%.

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