Goldman Sachs analyst Olivier Nicolai upgraded Diageo (DEO) to Neutral from Sell with a 2,000 GBp price target The firm sees limited downside risk in FY26, as new management steps up cost saving to support best-in-class margins and stabilize earnings, albeit visibility remains low an the outlook is based on a H2 recovery. Cost savings should support margins in FY26, although the top line needs to improve from FY27 for margin progression to continue, the analyst says, adding that the firm expects a positive step-up in free cash flow.
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