Analysts at Deutsche Bank lowered their target price on drinks maker Diageo from 3,350.0p to 3,160.0p on Wednesday as they adjusted their numbers on the stock ahead of its first-half results on 26 January.
Deutsche Bank expects to see Diageo deliver organic sales growth of 5.3%, organic operating profit growth of 4.0%, reported sales of £9.07bn, reported underlying earnings of £3.14bn, and earnings per share of 97.2p.
The German bank highlighted that having not given guidance at the time of its full-year results, it does not expect explicit 2023 guidance to be given along with the interim results.
However, DB expects the company to reiterate its medium-term guidance of 5-7% organic sales growth and operating profit growth of 6-9% for 2023-25.
Deutsche Bank, which reiterated its ‘sell’ rating on the stock, added that commentary around consumer demand, particularly downtrading, and cost pressures will likely be the “key” components of Diageo’s interims.
Reporting by Iain Gilbert at Sharecast.com
