Diageo (NYSE:DEO) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Wednesday, January 10th. The brokerage presently has a $162.00 price objective on the stock. Zacks Investment Research‘s price objective indicates a potential upside of 13.18% from the stock’s previous close.
According to Zacks, “Shares of Diageo have outperformed the industry in the past one year, driven by its strong fundamentals, continuous innovation and focus on expansion. Also, the company’s strategic endeavors including growth via acquisitions remain noteworthy. In fact, the buyout of the U.S. fastest-growing premium tequila brand, Casamigos, is expected to boost its market share in the category and is likely to capitalize on the company’s presence in the high-growth international markets.Notably, alcohol stocks are doing well backed by the rising demand for flavored whisky, premium tequilas and spirits. However, currency fluctuations pose a serious concern for the company. Macroeconomic factors such as interest rate hikes and increase in fuel and energy costs may also impact the company’s profitability.”
Several other research firms also recently weighed in on DEO. Berenberg Bank downgraded Diageo from a “buy” rating to a “hold” rating in a report on Wednesday, September 13th. Jefferies Group restated a “buy” rating and issued a $155.40 price target (up previously from $155.20) on shares of Diageo in a research report on Saturday, September 30th. Finally, Evercore ISI initiated coverage on Diageo in a research report on Thursday, September 28th. They issued an “outperform” rating and a $152.00 price target on the stock. Two investment analysts have rated the stock with a sell rating, three have assigned a hold rating and five have assigned a buy rating to the company’s stock. Diageo has a consensus rating of “Hold” and an average target price of $156.00.
Hedge funds have recently modified their holdings of the stock. Family Capital Trust Co acquired a new position in Diageo in the 3rd quarter valued at about $119,000. Tower Research Capital LLC TRC increased its position in Diageo by 404.4% during the 2nd quarter. Tower Research Capital LLC TRC now owns 1,039 shares of the company’s stock worth $125,000 after purchasing an additional 833 shares during the period. Rockefeller Financial Services Inc. acquired a new position in Diageo during the 3rd quarter worth approximately $125,000. Quadrant Capital Group LLC increased its position in Diageo by 11.4% during the 2nd quarter. Quadrant Capital Group LLC now owns 1,391 shares of the company’s stock worth $142,000 after purchasing an additional 142 shares during the period. Finally, Acrospire Investment Management LLC increased its position in Diageo by 62.5% during the 2nd quarter. Acrospire Investment Management LLC now owns 1,300 shares of the company’s stock worth $156,000 after purchasing an additional 500 shares during the period. Hedge funds and other institutional investors own 12.04% of the company’s stock.
Diageo Company Profile
Diageo PLC is an alcoholic beverage company. The Company operates in various categories, including spirits and beer. Its geographic segments include North America; Europe, Russia and Turkey; Africa; Latin America and Caribbean, and Asia Pacific. Its principal products includes Scotch whisky, Gin, Vodka, Rum, Beer, Irish Cream Liqueur, Wine, Raki, Tequila, Canadian Whisky, American Whiskey, Progressive Adult Beverages, Cachaca, Brandy and Ready to Drink.
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