Diageo downgraded to Neutral from Overweight at JPMorgan

JPMorgan analyst Celine Pannuti downgraded Diageo to Neutral from Overweight as part of a broader research note titled “Consumer Staples 2024 Outlook”. The firm is reducing its FY24/25 estimates across the board and sees a further narrowing of valuation multiples, anticipating weaker volumes, margin recovery being tempered by re-investments, FX headwinds, and interest costs, the analyst tells investors in a research note. JPMorgan adds that it is most cautious on the Spirits category as given its risks of earnings downgrades and a relatively high valuation compared to the rest of the Staples sector.