Analyst Robert Moskow of TD Cowen maintained a Hold rating on Diageo, reducing the price target to p2,000.00.
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Robert Moskow has given his Hold rating due to a combination of factors impacting Diageo’s performance. The company’s sales and profit forecasts have been adjusted downward, reflecting challenges in key markets such as the United States and China. In the U.S., the spirits market is experiencing a downturn, while in China, the sales of baiju are weaker than expected. These factors contribute to a cautious outlook for Diageo’s short-term growth prospects.
Additionally, while there are some positive developments, such as ongoing cost-saving initiatives and potential improvements in European market execution, these are offset by macroeconomic weaknesses in regions like Germany and France. Furthermore, the Asia Pacific region faces challenges due to anti-extravagance measures in China, impacting sales. Although there is momentum in markets like India and Brazil, overall, the mixed regional performance and adjusted growth estimates support the Hold rating.
In another report released on October 17, Deutsche Bank also maintained a Hold rating on the stock with a £19.15 price target.
Based on the recent corporate insider activity of 136 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DGEAF in relation to earlier this year.