NEW YORK (TheStreet) -- Why do analysts love Diageo (DEO) now? The company's American depositary receipts are up 1.5% to close to $122 Tuesday after another analyst upgrade, this time by Nomura Securities, raising the beer and spirits company to buy from neutral.
This marks the fourth significant upgrade in roughly two weeks, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, pointed out on CNBC's "Stop Trading" segment. While shares are down 2.8% over the past 12 months but the stock is up 11.5% since June 5.
Cramer said the reason for the upgrades is the analysts' fear of missing out on a merger down the road involving Diegeo. They're scared, he said, and can't have a bearish rating on a stock that could be bought out.
Rumors began circulating at the beginning of the month that private equity firm 3G Capital would make a bid to acquire Diageo.
While Cramer has previously discussed this possibilitly, he said it seems a bit overboard that the stock has caught so many upgrades as a result of this possibility.