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Diageo PLC shares surged over 2% after UBS analyst Sanjeet Aujla upgraded the stock from Sell to Buy, raising the price target from 2,300p to 2,920p, anticipating a 12% growth. UBS highlighted the strong performance of Don Julio Reposado tequila and Crown Royal Blackberry whisky, predicting U.S. sell-out growth of over 3.6% in early 2025, despite a challenging market. The consensus rating for Diageo remains a Moderate Buy, with a target price of 2,790.58p, indicating a 7% upside.
Campari's stock has risen for the seventh time in ten sessions, following UBS's upgrade of Diageo to 'buy' from 'sell'. UBS highlighted positive trends in Diageo's U.S. operations, particularly in Tequila, despite expectations of declining alcohol sales overall. Both companies are well-positioned for a potential recovery in the spirits market.
Diageo plc, a leading global producer of alcoholic beverages, has been upgraded to a "buy" rating by UBS. The company's product portfolio includes well-known brands such as Smirnoff, Johnnie Walker, and Baileys, with sales primarily from spirits (78%), followed by beers (16%) and ready-to-drink beverages (4%). Geographically, North America accounts for the largest share of sales at 39.3%, followed by Europe (23.8%) and Asia-Pacific (19%).
Diageo plc, a global leader in alcoholic beverages, has received a rating upgrade from UBS, moving from Sell to Buy. The company's product portfolio includes well-known brands such as Smirnoff, Johnnie Walker, and Baileys, with net sales primarily from spirits (78%), followed by beer (16%) and ready-to-drink beverages (4%). Geographically, North America accounts for the largest share of net sales at 39.3%, followed by Europe (23.8%) and Asia/Pacific (19%).
Diageo shares rose 3.8% to 2,583p after UBS upgraded the stock to 'buy' from 'sell' and increased the price target to 2,920p, citing strong growth in key brands like Don Julio and Crown Royal. UBS noted that sell-out trends are outperforming a weak Spirits industry, suggesting the company is nearing the end of its earnings downgrade cycle. Despite expected destocking affecting H1 US Spirits shipments, organic sales in North America are forecasted to rise 0.6%, contrary to consensus expectations of a 2.4% decline.
Diageo PLC saw a 3.5% rise in shares after UBS upgraded its rating from 'sell' to 'buy', anticipating a recovery in the company's fortunes by 2025, particularly in tequila and whisky sales. UBS projects a 3.6% increase in US spirits sales in the first half of 2025, despite current market challenges. The bank has also raised its price target for Diageo to £29.20 from £23, suggesting the company is nearing the end of its earnings downgrade cycle.
Diageo PLC saw a 3.5% rise in shares after UBS upgraded its rating from 'sell' to 'buy', anticipating a recovery in the company's fortunes by 2025, particularly in the Tequila and whisky sectors. UBS expects the US spirits market to grow by 3% annually, with Diageo's tequila arm and Crown Royal driving a projected 3.6% rise in sell-out volumes in early 2025, despite a challenging market. The bank has also raised its price target for Diageo to £29.20 from £23, suggesting the company is nearing the end of its earnings downgrade cycle.
UBS has upgraded its recommendation on Diageo from 'sell' to 'buy', increasing the price target from 2,300 to 2,920 pence, indicating a 19% upside potential. The broker anticipates a 3.6% growth in Diageo's US spirits sales for the first half of the year, contrasting with a 1% decline expected for the sector, and believes this growth will continue into the second half.
UBS has upgraded its recommendation for Diageo, as reported by Cercle Finance and published by BOURSORAMA. The analysis is provided for informational purposes only, with BOURSORAMA disclaiming any responsibility for its content and ensuring no conflicts of interest affect its objectivity. The institution adheres to strict regulations and maintains a conflict of interest management policy.
UBS has upgraded its recommendation on Diageo from 'sell' to 'buy', increasing the price target from 2,300 to 2,920 pence, indicating a 19% upside potential. The broker anticipates a 3.6% growth in Diageo's US spirits sales for the first half of the year, contrasting with a 1% decline expected for the sector, and believes this growth will continue into the second half.
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The information provided herein is generated by experimental artificial intelligence and is for informational purposes only.
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