European Daily Focus: Wednesday, 24th June 2026

Research evidence excerpt

European Daily Focus: Wednesday, 24th June 2026

with a Buy: Unlocking value through a proven playbook

operating segments, as the company laps a final quarter of relatively easy TandemMoving inDiabetesthe right direction but share needs to stabilize; Initiate at Hold

comparables before they become much more demanding in the second half of the Water Tech

year. Furthermore, we forecast a flattish adjusted EBIT, implying a margin of 16.9%, AWWA ACE Water Exhibition 2026 Key Takeaways - Resiliency on Display

Early Morning Reid

as we expect strong top-line growth to be offset by significant foreign exchange Macro Strategy

headwinds. Overall, we maintain our cautious stance on the investment case, Source : Deutsche Bank

noting that our sales and adjusted EPS estimates for 2026 remain 1% and 3% below

consensus, respectively, with a larger gap in the outer years. We believe consensus

expectations need to be rebased before we can potentially turn more positive on the

stock.

COMPANY UPDATES

DIAGEO (DGE.L) - Just one chart: A pick-up in promo for Diageo

Mitch Collett: Tgt 1,759p. Last Close 1,551.50p. Buy. The proportion of Diageo's

sales on promotion in US Nielsen continues to increase YoY. As the chart below

shows, the percentage of sales on promo has been increasing YoY since October

25. However, the quantum of increase has been increasing MoM and reached a new

high in the latest data set (the four weeks to 13 June) with a 320bps increase YoY

in value and a 440bpp increase by case. The brands with the largest YoY increase

in promo by value include Captain Morgan (+770bps YoY), Casamigos (+910bps),

Crown Royal (+330bps) and Smirnoff (+550bps). We note that all four continue to

experience volume declines YoY with Captain Morgan volume -5.7% (vs 12wk -