Diageo: Morgan Stanley sees a buy opportunity

(CercleFinance.com) - Morgan Stanley maintains its "overweight" recommendation on Britain's Diageo, with a 2,900 pence target price, seeing a buy opportunity after the share's underperformance relative to its spirits peers so far this year.


In a research report issued this morning, the broker highlights the group's "solid organic sales growth," as well as "strong cash generation."

Noting that at present "all eyes on the US spirits market," the broker points out that its proprietary US spirits wholesalers survey has been "reassuring" regarding market growth and more specifically about Diageo's brands.

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