Diageo half-year results: where next for the share price?
The British multinational alcoholic beverages company will unveil its interim results on Thursday, with analysts from Jefferies expecting to see a ‘more normalised outlook for growth’ in 2020.
Diageo will unveil its half-year results on Thursday, though analysts from Jefferies have downgraded the stock ahead of its latest set of earnings.
The US-based investment bank opted to lower its rating from ‘buy’ to ‘hold’ last week after ‘three very strong years of change’ for the group, with its analysts expecting a ‘more normalised outlook for growth’.
‘[Diageo] remains a well-run, diversified company that operates in a favourable industry, however, we move to 'hold' given less conviction on the upside to street expectations with the shares now fairly valued,’ Jefferies said in a note.
Analysts at Jefferies still believe the stock will rise, issuing a target price of £36 a share, which implies a potential upside of 12.5% based on Diageo trading at £31.99 as of 12:35 (GMT) on Monday.
Ready to start hedging? Open an account with IG today to get started.
Investors eager to learn impact of US tariffs on Scotch whisky
Scotch whisky exports to the US had a 25% tariff imposed on single malt on October 2019, with investors eager to see what impact it will have on Diageo’s half-year results.
The drinks maker exports Scotch whisky globally, with investors hoping that its blended brands like Jonnie Walker and Buchanan’s, which are exempt from the new tariffs, will help the company weather the storm.
However, analysts remain upbeat, forecasting 4.2% organic net sales growth and organic operating profit growth of 4% for the six months to December.
Credit Suisse and Bernstein remain optimistic about Diageo
Analysts from Credit Suisse and Bernstein remain optimistic about Diageo, with the pair reiterating their respective ‘outperform’ and ‘market perform’ ratings for the stock in January.
Credit Suisse and Bernstein both upgraded their price targets for the stock to £36.30 and £34 a share respectively, implying a potential upside of 13.5% and 6.3%.
Do you own Diageo shares? You can hedge your downside risk by trading CFDs.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
