Diageo: Credit Suisse raises price target

(CercleFinance.com) - Credit Suisse has raised its target price for the Diageo share from 3,400 pence to 3,450 pence, saying that it expects the company to benefit from a stronger recovery than consensus expectations.


In a note to clients, the broker said it sees "upside risks" to current estimates.

Credit Suisse said it is more upbeat on trading across Diageo's emerging markets, such as Asia-Pacific, expecting India to post modest growth in the first half of the current fiscal year, alongside with double-digit growth in China.

"Diageo remains our preferred stock in the Spirits sub-sector, as we expect a stronger topline recovery than consensus expectations and its close peer Pernod, which is not reflected in relative valuations," the note said.

Credit Suisse maintained its "outperform" rating on the stock.

Diageo will report its first-half results on 28 January.

Copyright (c) 2021 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.