Diageo: UBS confirms buy rating
(CercleFinance.com) - The broker emphasizes growth potential in the US.
It confirms its Buy recommendation on the stock, with an unchanged target price of 2920 pence, representing 25% upside potential for the British spirits giant's shares.
We expect Diageo's H1 sales/EBIT to come in at +1.1%/-1.4%, ahead of the company's compiled earnings of +0.4/-2.2%, thanks to growth in North America (around 50% of EBIT), UBS says.
The broker expects Diageo's US spirits sales to grow by 3.6% in H1, compared with an expected 1% decline for the sector, and considers the growth drivers to be sustainable for H2.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
It confirms its Buy recommendation on the stock, with an unchanged target price of 2920 pence, representing 25% upside potential for the British spirits giant's shares.
We expect Diageo's H1 sales/EBIT to come in at +1.1%/-1.4%, ahead of the company's compiled earnings of +0.4/-2.2%, thanks to growth in North America (around 50% of EBIT), UBS says.
The broker expects Diageo's US spirits sales to grow by 3.6% in H1, compared with an expected 1% decline for the sector, and considers the growth drivers to be sustainable for H2.
Copyright (c) 2025 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.