Diageo: Deutsche Bank downgrades stock

(CercleFinance.com) - On Wednesday Deutsche Bank downgraded its rating on Diageo shares from "buy" to "hold", believing that the global spirits giant is now better valued on the stockmarket.


In its sector report, the broker acknowledges that the British group remains well placed to benefit from the sector's LT growth, although considers its product portfolio (scotch, Canadian whisky and gin) to be less well positioned than those of competitors such as Pernod or Remy Cointreau.

The broker nevertheless says it sees Diageo as a "strategic asset" that should not be overlooked in a sector that has already undergone multiple phases of consolidation.

Diageo shares are afloat this lunchtime (+0.2%), although are underperforming the market in London (+0.9%).


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