Diageo cut to Hold at Argus amid rising costs, slowing growth

As previously reported, Argus downgraded Diageo to Hold from Buy with no price target. The company has been seeing its costs rise due primarily to supply-chain disruptions, higher freight rates, and glass prices, the analyst tells investors in a research note. Diageo’s global growth is also slowing from the rapid pace seen during the pandemic, and the company is losing market share in the U.S., Argus added, also cutting its FY24 EPS estimate to $9.15 from $9.24 and its FY25 EPS estimate to $9.90 from $10.00.