Diageo price target lowered to $109 from $117 at BofA

BofA lowered the firm’s price target on Diageo (DEO) to $109 from $117 and keeps a Buy rating on the shares. The spirits industry in the U.S. has been declining 3%-4% consistently this year, excluding prepared cocktails, and the firm’s recent virtual fieldtrip confirmed that recovery may still take time, the analyst tells investors. However, despite the difficult environment, the firm maintains a Buy on Diageo because of valuation and expectations that execution and innovation should underpin a sequential improvement in the U.S. in the second half.