Diageo downgraded to Neutral from Buy at Goldman Sachs

Goldman Sachs analyst Olivier Nicolai downgraded Diageo to Neutral from Buy with a price target of $186.48 for the ADR, down from $217.80. The analyst is also cutting the firm’s price target in GBp to 3,700 from 4,500. Goldman Sachs notes that its May-June survey was the most cautious since 2020 as respondents expected weaker volume trends in the U.S. while the outlook for pricing was also more pessimistic. The secular premiumization trend is also expected to be on hold after strong gains in 2020-2022, the firm tells investors in a research note.