Diageo plc (LON:DGE) Given Consensus Rating of “Moderate Buy” by Brokerages

Diageo plc (LON:DGE) has been assigned a consensus recommendation of “Moderate Buy” from the eight analysts that are presently covering the stock, Marketbeat reports. Three analysts have rated the stock with a hold recommendation and five have issued a buy recommendation on the company. The average 12-month target price among brokers that have issued ratings on the stock in the last year is GBX 2,111.25.

A number of equities analysts have weighed in on the company. Royal Bank Of Canada reiterated an “outperform” rating and set a GBX 2,000 price objective on shares of Diageo in a research note on Monday, February 2nd. Deutsche Bank Aktiengesellschaft reduced their price target on Diageo from GBX 1,840 to GBX 1,790 and set a “hold” rating for the company in a research report on Friday, November 28th. JPMorgan Chase & Co. restated a “neutral” rating on shares of Diageo in a research report on Thursday, January 22nd. Berenberg Bank cut their target price on shares of Diageo from GBX 2,372 to GBX 2,370 and set a “buy” rating for the company in a report on Thursday, November 6th. Finally, Jefferies Financial Group decreased their target price on shares of Diageo from GBX 2,300 to GBX 2,000 and set a “buy” rating for the company in a research note on Thursday, January 15th.

Diageo Trading Up 1.3%

Shares of Diageo stock opened at GBX 1,606 on Friday. The stock has a market cap of £35.71 billion, a PE ratio of 15.19, a price-to-earnings-growth ratio of 1.75 and a beta of 0.36. The firm has a fifty day moving average price of GBX 1,686.86 and a 200 day moving average price of GBX 1,782.96. Diageo has a 1 year low of GBX 1,564 and a 1 year high of GBX 2,226. The company has a debt-to-equity ratio of 234.57, a current ratio of 1.94 and a quick ratio of 0.62.

Key Diageo News

Here are the key news stories impacting Diageo this week:

• Positive Sentiment: New CEO prioritises the balance sheet and financial flexibility — management is explicitly focused on reducing leverage and rebuilding margin for strategic options, which could improve long‑term resilience. Diageo’s new boss gets to work on the balance sheet
• Positive Sentiment: Dividend rebasing designed to create headroom — management set a new minimum annual dividend floor and signalled a 30–50% payout framework to prioritise debt reduction and flexibility for reinvestment or M&A. That reduces near‑term yield but may support strategic options later. Diageo’s new boss signals deep reset with dividend and forecast cuts
• Neutral Sentiment: Analyst consensus target remains above current levels (average target reported ~GBX 2,111), implying some analysts still see upside if turnaround executes — monitor revisions. Diageo plc (LON:DGE) Receives GBX 2,111.25 Average Target Price from Analysts
• Neutral Sentiment: Commentary is split on whether the share drop creates a buying opportunity or a value trap; this will hinge on cadence of sales recovery in North America/China and pace of deleveraging. Should I buy Diageo shares after the 25 February update?
• Negative Sentiment: Interim results showed a decline in organic net sales (reported weakness in North America and Chinese white spirits) and management trimmed its outlook — a demand slowdown in key markets hurts near‑term revenue and mix. Diageo (DEO) slides 16% after dividend reset and weaker U.S./China outlook in interim results
• Negative Sentiment: Market reaction has been severe: coverage cites large intraday share declines following the dividend and guidance cuts, reflecting investor concern about earnings visibility and payout reduction. Diageo shares plunge another 7% on grim results – buying opportunity or value trap?
• Negative Sentiment: High reported net debt (management cited net debt around $21.7bn) underpins the decision to cut distributions and increases scrutiny on cash generation and cost savings execution. Diageo cuts forecast again, slashes dividend as US and China demand weakens

Insider Buying and Selling at Diageo

In other news, insider John Alexander Manzoni bought 410 shares of the stock in a transaction dated Wednesday, December 10th. The shares were acquired at an average cost of GBX 1,600 per share, with a total value of £6,560. Insiders have bought a total of 1,199 shares of company stock valued at $2,012,531 in the last three months. Corporate insiders own 0.16% of the company’s stock.

Diageo Company Profile

Diageo is a global leader in premium drinks, across spirits and beer, a business built on the principles and foundations laid by the giants of the industry.

With over 200 brands sold in 180 countries, our portfolio has remarkable breadth. From centuries-old names to exciting new entrants, and global giants to local legends, we’re building the very best brands out there, and with over 30,000 talented people based in over 135 countries, we’re a truly global company. With such diversity, we’re able to truly represent our broad consumer base and think differently about the future.

To maintain our position as leaders in the alcoholic beverage market, we always invest in the future and are mindful of the impact we have.