1134 GMT - A period of limited profitability is already reflected in Diageo's share price and should leave the booze group better positioned to capture sales growth, Deutsche Bank says in a research note. The bank lifts its rating on Diageo stock to buy from hold. The maker of Guinness and Johnnie Walker said it expects a drop in sales this year, with little margin growth. And the group could struggle to meet even that pale guidance, Deutsche's Mitch Collett says. "However, we believe this quantum of downgrade is already reflected in the share price," Collett says. "We believe the company can invest in price, marketing, route to market and innovation, leaving Diageo better able to deliver the sort of predictable profitable growth that investors value highly." The German bank trims its target price on the stock to 1650 pence from 1790 pence. (joshua.kirby@wsj.com; @joshualeokirby )

(END) Dow Jones Newswires

March 31, 2026 07:40 ET (11:40 GMT)

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