Diageo's trading statement today has so far received mixed response from the City.

CSFB reiterated its "outperform" rating of stock in the UK drinks group and raised the target price to 930 pence from 900.

CSFB said the key was that Diageo was expecting moderate acceleration in organic profit growth over the next 12 months despite continued high levels of investment.

However, Panmure Gordon was less impressed and reduced its rating on Diageo to "sell" from "hold".

The brokerage said the trading update had added to its concerns about its trading, particularly in regards to Europe and Guinness. It also said there had been a slowdown in the US.

"Diageo remains fundamentally over valued," the note said. "The shares may well be supported by the continuing share buyback programme, but not by fundamentals," a research note said.