Diageo (NYSE:DEO) is rated Buy by Deutsche Bank, which sets a 1650p target against a last close of 1480.80p, implying around 11% upside.
Deutsche Bank's analyst Mitch Collett pointed to a recent FT report claiming Diageo is "betting big" on canned cocktails, and said this underlines the Guiness and Smirnoff owner's strategic push into the ready-to-drink (RTD) cocktail market.
He added that this is supportive for the London-listed share, but cautionary the ready-to-drink boom could prove transitory.
Collett cites NABCA data showing US spirits value sales fell 2.8% in 2025 with volume down 1.4%, while value growth excluding prepared cocktails was -3.5% and volume -3.2%, and notes prepared cocktails-9% of industry volumes and 3% of value-grew value 23.2% and volume 22.6% in 2025.
"We would view a more proactive approach to capturing the RTD Cocktail opportunity as positive for Diageo's shares," Deutsche Bank wrote.
