Diageo PLC (LSE:DGE) shares got a boost after naming Sir Dave Lewis as its next chief executive, with Citi analysts backing the appointment of a "well-known and well-respected executive in the consumer good industry".
Analysts at the bank said the news deserved to be taken well, but that upside for the shares was likely to be capped, due to "debates around potential changes to future strategy, personnel and targets under Sir Dave".
As well as brand and marketing experience from three decades at Unilever, his six years as Tesco CEO saw a back-to-basics strategy that involved significant cost-cutting, restructuring, and a renewed focus on the food business.
Citi noted that Lewis's efforts at Tesco restored its market-leading position in the UK and strengthened its balance-sheet.