Diageo share price: what’s the outlook ahead of its half-year results?

The British multinational alcoholic beverages company will unveil its half-year results next week, with analysts at Jefferies downgrading the stock ahead of its latest set of earnings.

Diageo will unveil its half-year results on Thursday 30 January, though analysts from Jefferies have opted to downgrade 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 drinks maker.

‘[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.

Despite the downgrade, analysts at Jefferies remain optimistic about the stock’s price trajectory, issuing a target price of £36 a share, which implies a potential upside of 11% based on Diageo trading at £32.24 as of 16:20 (GMT) on Wednesday.

Ready to start hedging? Open an account with IG today to get started.

Credit Suisse and Bernstein upbeat 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.

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 12.6% and 5.5%.

Do you own Diageo shares? You can hedge your downside risk by trading CFDs.

Diageo acquires stake in non-alcoholic spirits maker

Earlier this month, Diageo acquired a minority stake in Ritual Zero Proof, a company which labels itself as the world’s first alcohol-free spirits brand.

‘Just like almond milk and veggie burgers, spirit alternatives are changing the landscape,’ Marcus Sakey, founding partner and chief brand officer of Ritual Zero Proof said.

‘In 18 months, we predict non-alcoholic options will be on every menu and the shelves of every grocery store.’

Diageo clearly sees significant growth potential in non-alcoholic alternatives, with the market expected to generate huge profits for investors over the next five years.

‘We are excited to support such an interesting new brand in the vibrant non-alcoholic space,” said Eugene Khabensky, ventures director at Diageo. ‘We put the consumer at the heart of our business, and Ritual Zero Proof is a fantastic offering that provides consumers with more choices of the highest quality.’

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.

Please see important Research Disclaimer.

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
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.