Diageo: Free Cash Flows And Great Brands But Low Organic Growth
Diageo is nearing 5-year lows, presenting a potential buying opportunity at 16.9x P/E for long-term value investors. The combination of share buybacks, dividends, and sales growth supports a positive long-term investment thesis. While volume growth may be low and stagnating, this mature company with great brands is able to increase prices over the rate of inflation.
Diageo upgraded after 42% slide. But it's still not time to buy
Deutsche Bank has upgraded Diageo PLC (LSE:DGE) to 'hold' from 'sell', saying the stock is now “substantially de-risked” after a sharp decline. The bank kept its price target at 2,020p, which suggests 6.5% downside from current levels.
Sainsbury's, M&S, Diageo among those cheering rebounding retail sales
News sales had enjoyed a healthy rebound across the sector in January sent shares in retailers higher on Friday. FTSE 250-listed Ocado Group PLC ticked up 3.1% to lead broad-based gains, which stretched to other mid-caps such as Pets at Home Group PLC and several blue chips.
TAP vs. DEO: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Beverages - Alcohol sector might want to consider either Molson Coors Brewing (TAP) or Diageo (DEO). But which of these two companies is the best option for those looking for undervalued stocks?
Diageo: Half Full Or Half Empty?
We are still positive about Diageo. Positive price MIX evolution and gross margin up. H2 organic sales and EBIT are expected to improve, with North America showing strong innovation and LatAm having easier comps. Potential tariffs could impact US sales, but mitigation strategies and supply chain optimizations are in place to offset this.
Diageo 1H25 Earnings & Sales Fall Y/Y, Medium-Term View Withdrawn
DEO's first-half fiscal 2025 results benefit from organic sales growth across four out of five regions, offset by unfavorable currency impacts.
Diageo splits analysts as ‘peak pessimism' hits with tariff threat
Diageo PLC had divided analysts after removing medium-term guidance and flagging the potential impact of US tariffs against Canada and Mexico on Tuesday. Deutsche Bank hit the drinks maker with a ‘sell' rating following interim results, noting sales and profit had declined slower than expected over the first half to December.
Diageo plc (DEO) F25 Interim Results Q&A Conference Call Transcript
Diageo plc (NYSE:DEO ) F25 Interim Results Q&A Conference Call February 4, 2025 4:30 AM ET Company Participants Sonya Ghobrial - Global Head of Investor Relations Debra Crew - Chief Executive Officer Nik Jhangiani - Chief Financial Officer Conference Call Participants Simon Hales - Citi Sanjeet Aujla - UBS Andrea Pistacchi - Bank of America Mitch Collett - Deutsche Bank Gen Cross - BNP Paribas Edward Mundy - Jefferies Celine Pannuti - JPMorgan James Edward Jones - RBC Operator Good morning and welcome to Diageo's F25 Interim Results Q&A Conference Call. [Operator Instructions].
U.S. tariffs would deal a major blow to alcohol companies, analyst says
Jonny Forsyth, senior director of food & drink at Mintel, weighs in on Diageo's earnings and the potential impact of U.S. tariffs on the drinks industry.
Diageo Q2: When Pessimism Becomes Too Much
Diageo plc's organic sales grew in most regions despite challenges, with notable success in tequila and Guinness brands, indicating resilient consumer demand. Investors are concerned about tariffs and declining alcohol interest among young people, but Diageo's long-term market presence and brand strength remain solid. DEO's current stock price slump may be an overreaction, presenting a potential buying opportunity given its strong fundamentals and high dividend yield.
Diageo figures 'hard' to gauge as Trump tariffs hamper outlook
Diageo PLC has no doubt left investors with questions after interim results saw uncertainty around US tariffs flagged and medium-term guidance scrapped, according to analysts. Despite organic sales and earnings growth beating consensus estimates over the first half to December, Barclays analysts noted it was “hard to make a firm conclusion” from the results.
Diageo plc (DEO) Q2 2025 Earnings Call Transcript
Diageo plc (NYSE:DEO ) Q2 2025 Earnings Conference Call February 4, 2025 2:15 AM ET Company Participants Debra Crew - Chief Executive Officer Nik Jhangiani - Chief Financial Officer Conference Call Participants Debra Crew Good morning, everyone. Thank you for joining our results presentation for the first half of fiscal '25.
