Diageo: still positive, Credit Suisse raises target price.
(CercleFinance.com) - Credit Suisse (CS) has raised its target price for the share of the British group of spirits and liquors group Diageo from 2,700 pence to 2,840 pence.
CS has also confirmed its outperform rating, as well as the stock's best pick status.
According to a research note, the group's "turnaround is gathering momentum" and may well reflect that of Heineken, which has been one of the best players in mass-market consumption for over three years now.
Indeed, Diageo has thoroughly reorganised itself and has simplified its organisation, with "information systems have radically improved," adds Credit Suisse, which shortened the decision-making process. "There is more to do, but we think Diageo appears to be more agile today than at any time in its history," its research report says.
In short, sales growth seems bound to accelerate, and profitability is expected to improve. Credit Suisse is also believes that Diageo may somehow be able to sell its brewing activities, which would enable it to better value its spirits business.
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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.
CS has also confirmed its outperform rating, as well as the stock's best pick status.
According to a research note, the group's "turnaround is gathering momentum" and may well reflect that of Heineken, which has been one of the best players in mass-market consumption for over three years now.
Indeed, Diageo has thoroughly reorganised itself and has simplified its organisation, with "information systems have radically improved," adds Credit Suisse, which shortened the decision-making process. "There is more to do, but we think Diageo appears to be more agile today than at any time in its history," its research report says.
In short, sales growth seems bound to accelerate, and profitability is expected to improve. Credit Suisse is also believes that Diageo may somehow be able to sell its brewing activities, which would enable it to better value its spirits business.
Copyright (c) 2017 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.