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Research Alert: CFRA Lifts Opinion On Adss Of Diageo To Buy From Hold
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Research Alert: CFRA Lifts Opinion On Adss Of Diageo To Buy From Hold
Mar 11, 2026 5:39 AM

12:40 AM EST, 02/26/2026 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target price is raised to USD108 (from USD100). This is based on a FY 26 (Jun.) P/E of 16.4x, which is a discount to its five-year historical average of 20.3x and the industry forward average of 17.1x. We believe our relative valuation appropriately reflects Diageo's ( DEO ) strong portfolio, which has exhibited resilience in the current environment, though its U.S. spirits weakness has tempered our view slightly. Nevertheless, we think the new leadership provides upside optionality given additional transparency and willingness to face the challenges head on. We think the outsized reaction resulting in a significant one-day drop in share price is overdone. Diageo's ( DEO ) new CEO, Dave Lewis, is likely trying to manage expectations via a dividend cut and guidance downgrade, in our view. We look forward to his initiatives to address some of the operational issues and growth challenges, particularly in China and U.S. spirits. We keep our EPADS estimates at USD6.64 and USD7.24 for FY 26 and FY 27, respectively.

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