Diageo: overall, results in line says Goldman Sachs

(CercleFinance.com) - Goldman Sachs believes that the group's FY 2019-20 results are broadly in line, with strong resilience in the US.


Following this announcement, Goldman Sachs confirms its buy rating on the stock with an unchanged price target of 3190p.

The analyst points out that organic sales were down -8.4% compared to the consensus of -7.3%, while a fall in organic EBIT of -14.4% was slightly worse than the consensus of -13.6%. Reported EBIT was in line and EPS of 109.4p was 1% above the consensus.

Like most companies, management has not provided guidance for sales and EBIT for the next financial year, but expects the first half of the year to be significantly impacted and that its margin is diluted, the broker noted.


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