UK: Morgan Stanley upgrades rating for Diageo
Morgan Stanley has upgraded its coverage of Diageo.
The broker said yesterday (21 January) that it has upped the beverage giant's rating from 'equal weight' to 'overweight', with a GBP11.50 target.
Morgan Stanley added in a note that it has a more positive view of the spirits sector and that the category will meet market expectations for earnings due to continued growth from the emerging markets and its limited exposure to the rising cost of raw materials compared to brewers.
Due to a strengthened balance sheet and broadened emerging market exposure, Diageo is now its preferred holding, added the broker, maintaining that it will not change its 'overweight' rating on rival company Pernod Ricard.
Pernod Ricard has been set a selection of hoops to jump through ahead of the closure of its acquisition of Vin & Sprit....
Pernod Ricard has refused to confirm reports it is in talks to sell its Glendronach malt whisky distillery for GBP30m....
Diageo Australia is investing A$400,000 (US$328,000) in Johnnie Walker brand activity for Father's Day....
Diageo has increased the media spend for its Smirnoff vodka brand in the UK by 70%....
Heineken has poached a senior marketing executive from Diageo in the US....
Whyte & Mackay has declined to comment on reports that it is considering a move for Glenmorangie's Glen Moray Distillery....
The top ten most visited stories on just-drinks this week included news on V&S and A-B and cost pressures at Cott, whilst whisky dominated the spirits headlines....
Diageo has begun trialling two new vodka flavours in a select number of pubs and bars in the UK....
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