Diageo stays a 'Buy' with $90 target despite sales challenges and North America weakness.

Diageo remains a recommended 'Buy' with a revised price target of $90 per share, reflecting updated risks and valuation. The company has achieved over $800 million in restructuring savings and reduced headcount, supporting earnings resilience despite organic sales declines. North America faces significant challenges with double-digit declines in spirits sales expected through 2027, while other regions show growth. Potential US import bans on Canadian whisky pose a modest risk but are unlikely to affect the long-term investment thesis.