Oddo BHF maintains its 'outperform' rating on Diageo shares and has revised its target price upwards from 3200 to 3400 pence, after adjusting its DCF assumptions for the British spirits group.

The current valuation level presents an attractive entry point at a time when the risks have been well integrated and the group should return to growth in the coming months", says the analyst in charge of the file.

Oddo BHF notes that the only point of uncertainty is the currency effect, dependent on highly volatile emerging currencies. In the very short term, therefore, Diageo's outperformance of Pernod Ricard could fade", he warns.

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