(CercleFinance.com) – Diageo climbed on the London Stock Exchange on Friday on favorable comments from Goldman Sachs, which said it expected a solid publication of annual results next month.
The action of the world number one spirits is currently 2.9%, signing one of the largest increases in the FTSE 100 index, which wins more than 1%.
The title thus raises its head after a decline of more than 12% since the beginning of the year.
“Diageo stock has materially devalued in recent months – both in absolute and relative terms – which creates an attractive entry point,” Goldman analysts note.
The American bank indicates that it expects the annual results for the 2021/2022 financial year, which will be unveiled on July 28, to constitute a positive catalyst for the stock market.
Goldman anticipates in particular a reassuring message from the management as to the state of health of the main markets of the group which are the United States, Western Europe and India.
‘Even if the demand for spirits is not totally immune to an economic downturn, Diageo is better prepared than in 2009’, say the analysts, who therefore maintain their buy recommendation and their target price of 4,700 pence.
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