Analyst Andrea Pistacchi of Bank of America Securities reiterated a Buy rating on Diageo (DGEAF – Research Report), with a price target of p2,450.00.
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Andrea Pistacchi has given his Buy rating due to a combination of factors including Diageo’s expected strong performance in the upcoming Q3 trading update. Despite short-term uncertainties and recent disappointments from peers, Diageo is anticipated to achieve a solid +2.6% organic sales growth, aided by shipment phasing to the US ahead of tariffs. The company’s ability to leverage consumer insights and marketing strategies is exemplified by the success of Guinness, which has been transformed into a contemporary brand appealing to a broader demographic.
Furthermore, Diageo’s valuation appears attractive as it trades at a discount to its peers despite a projected long-term EPS growth of around 7%. Although the price objective has been adjusted downward to reflect new EPS estimates and market uncertainties, the potential for recovery, particularly in the US market, supports the Buy rating. The company’s strategic brand management and growth prospects in various markets contribute to a positive outlook for Diageo’s stock.
In another report released on May 14, Bernstein also maintained a Buy rating on the stock with a £28.50 price target.
Based on the recent corporate insider activity of 145 insiders, corporate insider sentiment is neutral on the stock.