Diageo: Credit Suisse raises target price
(CercleFinance.com) - Credit Suisse reinstates its “outperform” rating on Diageo shares, having increased its target price for them from 39.
5 pounds to 42 pounds, after increasing its EPS estimates by around 4%-5%, thanks to more favourable exchange rates.
The broker has also raised its 2022 organic revenue and operating profit growth forecasts to +13% and +17% respectively, saying it is "more positive on near term trends in the US and the strength of the recovery in Europe".
"Diageo remains our preferred stock in Spirits, as we think the high margin US Spirits portfolio could sustain high-single digit growth post pandemic and support a further re-rating," it adds.
However, the market seems more cautious today - the share is currently down over 1.5% in London, underperforming the market by over 1%.
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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.
5 pounds to 42 pounds, after increasing its EPS estimates by around 4%-5%, thanks to more favourable exchange rates.
The broker has also raised its 2022 organic revenue and operating profit growth forecasts to +13% and +17% respectively, saying it is "more positive on near term trends in the US and the strength of the recovery in Europe".
"Diageo remains our preferred stock in Spirits, as we think the high margin US Spirits portfolio could sustain high-single digit growth post pandemic and support a further re-rating," it adds.
However, the market seems more cautious today - the share is currently down over 1.5% in London, underperforming the market by over 1%.
Copyright (c) 2021 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.