Diageo's Growth Will Normalize in 2023, Jefferies Says
1130 GMT - Diageo PLC will be better able to absorb volatility than in the past thanks to its healthier portfolio and productivity mindset, says Jefferies analyst Edward Mundy in a note. "The portfolio is more growthy by geography, category, and price tier," he says. A two-year long pandemic-boosted upgrade cycle has given the Johnnie Walker whisky and Tanqueray gin owner a high base to top, though as dust starts to settle the U.S. bank sees growth in 2023 normalizing toward the group's medium-term framework. Jefferies has a buy rating on the stock and has cut its target price to GBP43 from GBP45, to reflect currency moves and gentle upward pressure on its weighted average cost of capital. Shares are down 0.3% at GBP37.65. (elena.vardon@wsj.com)
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12-09-22 0731ET
