Jefferies raises its recommendation on Diageo from 'hold' to 'buy', with a target price raised from 2,300 to 2,800 pence, ahead of the likely delivery of the 2027-29 financial framework with the half-year results due in February 2025.

'Companies don't change overnight, but Diageo will start to look fresh with growing confidence in the growth of spirits, and under the leadership of a strong new CFO', believes the broker.

Jefferies, for its part, anticipates a 'renewed focus on growth, earnings and cash flow', and considers that 2025 should be a slow year for the British spirits giant, before an upturn from 2026 onwards.

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