Bank of America Securities analyst Andrea Pistacchi reiterated a Buy rating on Diageo today and set a price target of p2,200.00.
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Andrea Pistacchi has given his Buy rating due to a combination of factors including Diageo’s anticipated financial performance and market positioning. Despite a slight decline in organic EBIT for FY25, the company’s sales are expected to show a sequential improvement, aligning with management’s guidance. The forecasted free cash flow and stable dividend further support the positive outlook.
Additionally, Diageo’s valuation appears attractive, trading at a significant discount compared to its peers, which is not justified given the expected mid- to long-term growth. The company’s focus on cost control and free cash flow management, along with the potential for margin expansion in FY26, are positive indicators. As growth gradually improves, particularly in the US market, the stock is expected to rerate, justifying the Buy recommendation.
In another report released today, UBS also maintained a Buy rating on the stock with a p2,450.00 price target.