Diageo (DGEAF – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Robert Moskow from TD Cowen maintained a Hold rating on the stock and has a p2,450.00 price target.
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Robert Moskow’s rating is based on several observations regarding Diageo’s performance and industry conditions. The spirits industry is experiencing slow growth, though there are some positive signs such as market share gains and growth in four out of five regions. Diageo’s renewed focus on operational efficiency and cash generation is encouraging, but the ongoing cyclical downturn in the spirits industry suggests caution.
Additionally, Diageo’s decision to withdraw its medium-term guidance due to macroeconomic and geopolitical uncertainties reflects the challenges the company faces in predicting recovery timelines. This decision aligns with concerns about overall spirits consumption trends, particularly in North America. While Diageo expects improvements in sales and has plans to mitigate potential tariff impacts, the uncertainties and potential risks in the industry warrant a Hold rating.
In another report released on February 4, RBC Capital also maintained a Hold rating on the stock with a £24.00 price target.