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UBS has upgraded its recommendation on Diageo from 'sell' to 'buy', increasing the price target from 2,300 to 2,920 pence, indicating a 19% upside potential. The broker anticipates a 3.6% growth in Diageo's US spirits sales for the first half of the year, contrasting with a 1% decline expected for the sector, and believes this growth will continue into the second half.
Diageo has received a double upgrade from UBS, moving from Sell to Buy, driven by strong growth in its brands Don Julio and Crown Royal. The firm has also raised its price target for the company by 27%, indicating a positive outlook as Diageo nears the end of its earnings downgrade cycle.
UBS has upgraded Diageo from "sell" to "buy," increasing its target price from 2300 to 2920 pence. Analyst Sanjeet Aujla noted that investors in the spirits maker's US business may start to regain confidence as the trend of declining earnings estimates appears to be reversing.
Diageo plc stands as a leading global producer and marketer of alcoholic beverages, with a diverse portfolio including brands like Smirnoff, Johnnie Walker, and Baileys. The company's sales are primarily driven by spirits (78%), followed by beers (16%) and ready-to-drink beverages (4%). Geographically, North America accounts for the largest share at 39.3%, followed by Europe (23.8%) and Asia-Pacific (19%).
UBS has upgraded Diageo from 'Sell' to 'Buy', increasing its target price from 2300 to 2920 pence. Analyst Sanjeet Aujla noted that investors in the spirits maker's US business may start to regain confidence as the trend of declining earnings estimates appears to be reversing.
Jim Cramer remains cautious about alcohol stocks, expressing concerns over long-term challenges such as changing consumer behaviors and the impact of weight loss medications on alcohol consumption. While he acknowledges some recent positive developments, including better-than-expected earnings from Brown-Forman and upgrades for several companies, he prefers to stay on the sidelines until he sees a shift in drinking trends among younger consumers.
UBS has maintained a 'Sell' rating for Diageo, setting a target price of 2300 pence, citing weak sales in India as a short-term risk for the liquor producer. Despite this, management remains optimistic about achieving double-digit percentage growth in the upcoming quarters.
UBS has maintained a "Sell" rating for Diageo, setting a target price of 2300 Pence, citing weak sales in India as a short-term risk for the spirits manufacturer. Analyst Sanjeet Aujla noted, however, that management remains optimistic about a return to double-digit growth in the next two quarters.
Diageo plc
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UBS Upgrades Diageo to Buy with Increased Price Target and Growth Outlook
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UBS Upgrades Diageo to Buy and Raises Price Target Significantly
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UBS Upgrades Diageo to Buy with Target Price Raised to 2920 Pence
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