Broker tips: Diageo, Fresnillo, M&S

Smirnoff and Captain Morgan owner Diageo was trading lower on Monday morning after Citigroup said it expects a 'soft quarter' for the spirits industry across the board. Nevertheless, the bank kept its 'buy' rating saying that growth should improve in the coming quarters and the company is the best positioned in the emerging markets (EM) for the long-term.Precious metals group Fresnillo was among the few risers on the FTSE 100 on Monday morning after UBS raised its rating for the stock from 'neutral' to 'buy', saying the recent weakness provides a buying opportunity.UBS believes that Fresnillo should trade at a premium to others in the precious metals sector due to its low-cost position, growth profile, low corporate governance and country risk, as well as a strong balance sheet.High Street department store Marks & Spencer (M&S) was trading in the red on Monday morning after Credit Suisse retained its 'underperform' rating, saying that full-year forecasts 'look demanding' after a weak first half. It said the stock is trading at a 20% premium to its long-term average and looks "overbought" after a 30% rise so far this year. The bank has cut its second-quarter like-for-like sales estimate from +0.5% to -1.5%, saying it reckons that the quarter has been slower than expected for M&S's UK General Merchandise (GM) division.BC