Andrea Pistacchi, an analyst from Bank of America Securities, reiterated the Buy rating on Diageo. The associated price target was lowered to p2,100.00.
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Andrea Pistacchi has given his Buy rating due to a combination of factors, notably the appointment of Sir Dave Lewis as CEO, which is seen as a strategic move for Diageo. Sir Dave Lewis brings a wealth of experience and a successful track record from his tenure at Tesco and Unilever, which is expected to provide Diageo with a clearer strategic focus and potentially enhance its performance culture.
Despite recent challenges, such as flat Q1 sales and revised guidance, Diageo’s valuation remains attractive. The company is trading at a discount compared to its peers, and its cost-saving initiatives are expected to contribute positively to its earnings. These elements, combined with the potential for margin expansion, underpin the Buy rating, as the long-term outlook for Diageo remains favorable despite short-term uncertainties.
In another report released today, UBS also maintained a Buy rating on the stock with a £22.50 price target.
Based on the recent corporate insider activity of 127 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DGEAF in relation to earlier this year.