According to Zacks, “Diageo outpaced the industry in the past year driven by its expansion and innovation strategy. This aided sales and earnings growth in first-half fiscal 2019. Moreover, the company’s focus on achieving growth via acquisitions is yielding results. Its focus on expanding presence in emerging markets and premium brands is also encouraging. However, Diageo’s sales is being negatively impacted by adverse currency rates, which is likely to persist in fiscal 2019. Further, input cost inflation and higher transportation costs are likely to weigh on margins. During first-half fiscal 2019, the company witnessed inflationary pressures from commodity costs. Inflationary cost pressures from commodity and transportation will slightly mar gross margin in second-half fiscal 2019. The company also expects muted operating margin growth in the second half, due to the phasing of productivity costs and marketing expenses.”
Several other equities analysts have also recently weighed in on DEO. Liberum Capital raised shares of Diageo from a sell rating to a hold rating in a research note on Thursday, January 31st. Barclays assumed coverage on shares of Diageo in a research note on Monday, April 1st. They set an overweight rating for the company. Finally, Investec cut shares of Diageo from a hold rating to a sell rating in a research note on Monday, March 25th. Two research analysts have rated the stock with a sell rating, two have assigned a hold rating and four have assigned a buy rating to the company’s stock. The company currently has a consensus rating of Hold and an average target price of $164.75.
Several large investors have recently modified their holdings of DEO. Centerpoint Advisors LLC purchased a new position in shares of Diageo in the 4th quarter worth $26,000. Financial Gravity Wealth Inc. purchased a new position in shares of Diageo in the 1st quarter worth $27,000. Acima Private Wealth LLC purchased a new position in shares of Diageo in the 4th quarter worth $29,000. Claybrook Capital LLC purchased a new position in shares of Diageo in the 4th quarter worth $30,000. Finally, Capital Investment Advisory Services LLC purchased a new position in shares of Diageo in the 4th quarter worth $31,000. 10.58% of the stock is owned by institutional investors and hedge funds.
Diageo Company Profile
Diageo plc, together with its subsidiaries, produces, markets, and sells alcoholic beverages worldwide. The company offers a collection of brands across spirits, beer, cider, and wine categories. Its brands include Johnnie Walker, Crown Royal, J&B, Buchanan's and Windsor whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Bundaberg, McDowell's No.
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