Diageo shares sink again — but RBC calls the sell-off “overdone” and sticks with a £20 target
RBC Capital Markets stuck with its Buy/Outperform rating on Diageo plc Wednesday, maintaining a 2,000 pence price target. The brokerage said the stock’s recent drop looks overdone. According to RBC, investors reacted to new chief executive Dave Lewis’s move to reset expectations—more margin investment in North America, a dividend cut—rather than evidence of any fresh trading issues. The analysts highlighted internal inefficiency, with about 65% of orders processed manually and some 80% of sales staff time devoted to order management, as areas ripe for both sales growth and cost savings. The call comes as Diageo works to regain its footing following a rough update back in February. On Feb. 25, the maker of Johnnie Walker and Guinness lowered its target
