Diageo: Bernstein upgrades stock

(CercleFinance.com) - Analysts at Bernstein upgraded Diageo shares to "outperform" on Monday, from "market perform", increasing their target price for them to 4,200p (from 4,030p).


In a report, the broker says it sees an "attractive" entry point for the British spirits group after its valuation multiples have been declining for over 12 months.

For Bernstein, Diageo is one of the most promising businesses regarding long-term growth within the consumer staples sector, notably because of its positive momentum in the US, but also ue to its positioning in emerging markets such as Latin America, Asia and Africa.

The company expects to reach the upper end of its long-term organic growth target of 5% to 7%, with operating profit growth exceeding this figure by one percentage point.


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