Diageo price target raised to $129 from $124 at TD Cowen

TD Cowen raised the firm’s price target on Diageo (DEO) to $129 from $124 and keeps a Hold rating on the shares. The firm believes 2025 is shaping up to be a tough year for the food and beverage industry as the probability of a material change in the regulatory environment is low, GLP-1 usage grows slowly and with a high rate of dropouts, and value-seeking shopping usually normalizes as consumers acclimate to higher prices and benefit from wage inflation. Cowen believes many food and beverage brands need to reset their prices and margin structures lower to improve their value perception with consumers.