Diageo stock upgraded to Buy as it boosts US promotions amid shifting alcohol demand trends

Cowen & Co. upgraded Diageo's stock rating from Hold to Buy, reflecting confidence in growth potential despite challenges in the alcoholic beverage sector. Diageo is increasing promotional efforts for its US spirits brands like Casamigos and Captain Morgan to counteract lower demand driven by younger consumers drinking less, inflation, and changing health attitudes. This strategy aims to stabilize sales in a competitive market facing structural shifts. The upgrade signals optimism about Diageo's ability to adapt and grow amid these trends.