Diageo Shares Only Slightly Lower Following Downgrade from Santander

Santander cut Diageo DEO from Buy to Hold Friday morning, citing concerns in emerging markets. The firm said Diageo has received at least three key pieces of bad news since an upgrade in December of last year:

• the company failed to acquire Jose Cuervo;
• the purchase of United Spirits hasn't gone as smooth as expected, and
• consumers in the emerging markets have been quiet.

Santander prefers some of Diageo's competitors such as SABMiller and Anheuser-Busch InBev BUD Shares of Diageo are down 0.3 percent to $113.42 on the NYSE.