Diageo has had its share coverage upgraded.

Deutsche Bank today (7 June) raised its rating on the drinks giant to 'buy' from 'hold,' while upping its price target to 1,000p from 900p. The bank also advised investors to switch from Pernod Ricard to Diageo.

In a note to clients, the bank said that the group is poised to start delivering an attractive rate of sustainable growth. Deutsche Bank said that Diageo was well-placed thanks to the disappearance of many features which have historically held back growth, coupled with evidence of increased momentum across Diageo's key brands.

The bank added that it believed Diageo would overtake its French rival and begin reporting superior growth. While Pernod was well-poised to offer further short-term upside due to the Allied Domecq synergies, Deutsche Bank said that long-term investors should look to switch.