Morgan Stanley Reduces Price Target on Diageo (DEO) Following $750,000 Fine From COMESA

Group 1 - Diageo plc (NYSE:DEO) has had its price target reduced by Morgan Stanley from 1,875 GBp to 1,740 GBp, maintaining an Underweight rating on the stock [1][2] - The price target adjustment follows Diageo's agreement to pay a settlement of $750,000 related to an investigation by the Common Market for Eastern and Southern Africa (COMESA) regarding market allocation practices [2][3] - The investigation revealed that Diageo had restrictive clauses in its production and distribution agreements in Seychelles and Uganda, which fixed product prices in the common market [3] Group 2 - Diageo shares have declined over 3% since Q2, but analysts remain generally positive, with BofA's Andrea Pistacchi maintaining a Buy rating [4] - The spirits industry has been experiencing a consistent decline of 3-4% this year, impacting Diageo's sales in the U.S., although there are expectations for sequential improvement in the last quarter [4] - As of October 21, the average price target for Diageo is $127.80, suggesting an upside potential of approximately 30.47% from current levels [5]