Diageo: Morgan Stanley maintains 'overweight' rating

(CercleFinance.com) - Morgan Stanley said on Friday that it remained positive on the shares of British spirits group Diageo, maintaining its "overweight" rating and target price of 3,200 pence per share.


After a strong performance over the past three years, Diageo has transformed itself into a true compounder, delivering solid sales growth and high cash generation, which deserves a premium to the rest of the staples sector, the broker said.

However, today there are some risks regarding US demand and FX volatility, Morgan wrote in a note.

Diageo shares are currently down 0.2% at 3,041 pence, outpacing a 0.7% fall in the FTSE 100 index.

Copyright (c) 2019 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.