DEO - Diageo upgraded to Buy as Bernstein calls out long-term growth story
Diageo ( NYSE: DEO ) is “one of the best long-term growth stories in global staples,” according to Bernstein analysts.
In a note upgrading her rating on the stock to Outperform, the team indicated that momentum in the US and emerging markets point to significant upside to sales guidance. Operating profits are expected to coincide with robust sales in coming years as well.
“The US spirits market experienced exceptional growth during the COVID crisis, which is now starting to normalize. We (and Diageo) expect their portfolio to grow at historical average rates off this new, enlarged base,” the team wrote. “However, Diageo is not just the USA. Europe is organically 26% ahead of pre-COVID and Latin America is up 72% in sales and 100% in profits.”
Read more on recent beer and spirit sales trends .
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Diageo upgraded to Buy as Bernstein calls out long-term growth story