Deutsche Bank Upgrades Diageo to Buy

Deutsche Bank upgraded Diageo to “buy” from “hold” on 31‑Mar‑2026, cutting price target to 1,650p from 1,790p.
The broker expects a profitability reset, forecasting FY27 EBIT margin 250bps lower and EPS 11% below consensus.
Revised target implies 14.7x P/E, a 13% discount to European staples and 30% below Diageo’s 10‑year 20.7x average.
Deutsche Bank projects 3‑4% organic sales growth and 5‑7% operating profit growth from FY28 onward.