Broker snap: Nomura in high Spirits

8th Dec 2010 12:53

The recovery in the global spirits market looks like it's still "on track", keeping Nomura positive on big players Diageo and Pernod.Japanese broker Nomura repeats its 'buy' rating on the pair and sees trading news improving for both over the next few quarters. Look out for Diageo North America's update call on 14 December."Although the valuation gap between beer and spirits has narrowed, we believe the valuation for beer is still high (calendar 2011E P/E 15x versus beer average 16x)," it says, with the valuation for spirits "undemanding".