The Diageo share price could make new highs after investment bank Deutsche set a target price of 4,470p for the company’s stock. This leaves the Diageo share price at least 10% room to navigate to the upside, following a recent support bounce.
The upgrade from Deutsche Bank comes as several analysts have affirmed a “Buy” rating for this stock. The ADR shares trading on the US stock market is also approaching 52-week highs as investors step up demand for the stock.
Diageo’s share price is seeing H2 recovery after the reopening of bars and restaurants worldwide from pandemic-induced closures has led to a return of demand for its products. As of writing, the stock is up 0.95%.
Diageo Share Price Outlook
The attempted breakdown of the ascending trendline met a support barrier at 3857.5, forcing a return to the upside. This advance move is now testing a recent resistance at 3926.5 (200% Fibonacci extension from the 13 August to 20 September price swing. A break above this level retests the recent YTD highs at 3950.0.
Conversely, a pullback from the 3926.5 resistance retests support at 3857.5. Only a breakdown of this pivot allows the price to aim for the 3827.5 downside barrier. Subsequent milestones to the south are found at 3800.00 and the 10 November low at 3735.5.