Diageo upgraded on recovery potential offering offer 20% upside for shares, says Deutsche

Deutsche Bank upgraded Diageo to 'buy' while lowering its price target to 1,650p from 1,790p, a cut that nevertheless implies roughly 20% upside from current levels. The bank cited a reset in expectations that leaves scope for recovery despite near-term pressure on earnings.

Analysis

Deutsche Bank upgraded Diageo to 'buy' while lowering its price target to 1,650p from 1,790p, a cut that nevertheless implies roughly 20% upside from current levels. The bank cited a reset in expectations that leaves scope for recovery despite near-term pressure on earnings.