Diageo PLC (LSE:DGE) has received a share price downgrade from analysts at Deutsche Bank, who argue that no news from Johnnie Walker and Smirnoff group is not a good sign.
True, a capital markets day is scheduled for 15 November, but Deutsche Bank believes it is unlikely Diageo will alter its medium-term guidance of 5-7% organic sales growth and 6-9% organic operating profit growth for the years 2023-25.
On the downside, the bank sees growing risks to next year given slower growth in the US and Europe and believes consensus organic sales growth of 4.5% looks overly ambitious given the US is likely flat.
Deutsche Bank is assuming 2.1% and in view of that has cut its share price target to 2,750p from 2,950p. 'Sell' remains its rating.
Shares were up slightly at 3,181p.