The investment bank Morgan Stanley said today that it has cut its price target on Diageo to 880 pence from 910p but kept an "equal-weight" rating on the stock.

The cut is apparently due to a more bearish outlook on medium-term sales, for which the bank is estimating a 6% growth against Diageo’s 8-10%.

In a research note, analysts also explained that they had cut Diageo forecasts to reflect currency movements. However, the analysts said they would use any weakness in Diageo shares to buy the stock.

Diageo shares were down 1.2 percent at 766 pence by 0733 GMT.