Diageo PLC (LSE:DGE) investors have plenty of reason to be optimistic even though there was no guidance with yesterday’s full-year numbers, said Goldman Sachs (NYSE:GS).
The Smirnoff vodka, Johnnie Walker whisky and Guinness stout maker reported organic net sales growth across all regions over the past year but warned it expects volatility in some markets in the coming months.
Goldman says the near 18% organic revenue growth last year was very strong and as Diageo’s brands are taking market share in a buoyant category, the broker sees the momentum continuing.
This year, expect organic sales growth of 9% to translate into 10% earnings growth said Goldman, which has raised its target price to 4,000p from 3,800p.
Buy is its investment view. Shares today rose 7p at 3,547p.