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Bernstein Upgrades Diageo plc (DEO) to Outperform

February 6, 2023 1:53 AM EST
Get Alerts DEO Hot Sheet
Price: $148.74 -0.46%

Rating Summary:
    14 Buy, 10 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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(Updated - February 6, 2023 5:06 AM EST)

Bernstein analyst Trevor Stirling upgraded Diageo plc (NYSE: DEO) from Market Perform to Outperform with a price target of $225.00 (from $215.00).

The analyst comments "Diageo is one of the best long-term growth stories in global staples. They are well positioned to profit from the long-term structural growth in US spirits and have great momentum in emerging markets (primarily spirits in LatAm and Asia but also in pockets of Africa). We are confident that they will hit the upper end of their long-term guidance of 5%-7% organic top-line growth, with Operating Profit growth a point ahead. The US spirits market experienced exceptional growth during the COVID crisis, which is now starting to normalize. We (and Diageo) expect their portfolio to grow at historical average rates off this new, enlarged base (although we acknowledge there is a risk that sales may fall first, as we are seeing in Cognac). However, Diageo is not just the USA. Europe is organically 26% ahead of pre-COVID and Latin America is up 72% in sales and 100% in profits"

For an analyst ratings summary and ratings history on Diageo plc click here. For more ratings news on Diageo plc click here.

Shares of Diageo plc closed at $175.09 yesterday.


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