DEO - Diageo is viewed cautiously by Deutsche Bank with consumer spending wavering

Deutsche Bank stayed cautious on Diageo ( NYSE: DEO ) after taking in the alcoholic beverage company's trading update from Thursday.

Analyst Mitch Collett said the statement indicates that Diageo ( DEO ) has made a good start to FY23 with organic net sales growth across all regions. However, he noted that DEO also flagged the company's expectation for the operating environment to remain challenging due to a weakening of consumer spending power, inflationary pressures and disruption related to Covid-19.

Notanly, Collett pointed out that the wording is very similar to the FY22 release except the word 'potential' has been removed from the comment on weakening in consumer spending.

Deutsche Bank kept a Sell rating in place on Diageo ( DEO ).

See more details about Diageo's trading update.

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