Alcoholic beverage company Diageo will see limited upsides ahead, says Goldman Sachs.
"With muted growth in the US, we see limited positive catalysts for Diageo and thus limited scope for earnings upgrades for the group," said Nicolaï.
To be sure, he noted that if the company's U.S. market share gains accelerated, the company could strongly outperform the rest of the market.
Goldman expects negative worsening volume trends and a weaker pricing outlook for U.S. spirits wholesalers over the next six months.
The firm noted that "the secular premiumization trend is expected to be on hold after strong gains in 2020–2022."
Persons:
Goldman Sachs, Oliver Nicolaï, Nicolaï, Goldman, — CNBC's Michael Bloom
Organizations:
Diageo
Locations:
U.S, FY23e