Diageo: Oddo welcomes H1 results above expectations
(CercleFinance.com) - An analyst at Oddo BHF this morning hails Diageo's interim results that are well above expectations, which has prompted him to raise his estimates for the group's operating profit.
We have (...) significantly increased our FY top line and operating profit estimates, although this has been offset by higher estimates of financial costs, minority interests and tax rates, so we have just increased our EPS estimates by under 1%. However, we are increasing our target price to 3,000p, so as to reflect higher multiples for peers and increased DCF, the analyst said.
The analyst however maintains his "neutral" on the stock, also noting that the group has maintained its guidance for the coming months. Diageo still expects mid-single digit FY organic sales growth and an increase in its operating margin that is in line with the target of 175bp for the three years to 30 June 2019, Oddo BHF points out.
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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.
We have (...) significantly increased our FY top line and operating profit estimates, although this has been offset by higher estimates of financial costs, minority interests and tax rates, so we have just increased our EPS estimates by under 1%. However, we are increasing our target price to 3,000p, so as to reflect higher multiples for peers and increased DCF, the analyst said.
The analyst however maintains his "neutral" on the stock, also noting that the group has maintained its guidance for the coming months. Diageo still expects mid-single digit FY organic sales growth and an increase in its operating margin that is in line with the target of 175bp for the three years to 30 June 2019, Oddo BHF points out.
Copyright (c) 2019 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.