Another bank has cuts its target rating on Diageo. Following last week's announcement by UBS that it has reduced its price target on Diageo to £8.50 a share from £8.60, Credit Suisse First Boston also cut its target on the drinks group, to £8.40 from £8.55. The bank has given Diageo an "outperform" rating.

In a note, CSFB said: "The company has quantified the profit hit from the weaker dollar. Our 2005 earnings per share estimates fall by 3% from 53.5p to 51.8p."

On Friday Diageo reported profit before tax and exceptional items for the first half of 2004 of £1,297m, compared to £1,274m last year. On a reported basis, turnover decreased by £273m (5%) from £5,333m, hit by the sale of Burger King. But for premium drinks, now the sole focus of the business, turnover increased by £206m (4%).