Diageo Share Discussion Threads

[philanderer] 12/12/2024 00:36

UBS Upgrades Diageo PLC. (DGE:LN) (DEO) to Buy

December 11, 2024 11:44 AM EST

UBS analyst Sanjeet Aujla upgraded Diageo PLC. (DGE:LN) (NYSE: DEO) from Sell to Buy with a price target of GBP29.20

[paul carty] 11/12/2024 17:48

Deutsch bank have been downgrading Diageo for over 15 years. This has occurred whilst the shares were rising exponentially during that period. They seem to have some issues with this stock that would appear totally unfounded and off track. I wonder has anyone else noticed this.

[suetballs] 10/12/2024 11:47

Good post anhar - we don't need any more concerns.
I see that aht is moving its primary listing to the the US. Not great for the ftse but others are sure to follow. Not suggesting that dge would follow suit but 40% of sales are in North America and we also report in US$.
Suet

[anhar] 10/12/2024 11:11

A very misleading conclusion from one isolated pensioner case.

In fact the DGE pension funds showed a surplus of $717m at the last annual accounts of 30 June 2024.

This can change due to three main factors: the value of the funds' investments; interest rates; the actuarial estimate of the funds' future liability to pensioners; all of which fluctuate quite a bit over time.

For example when interest rates were ultra low, a lot of funds went into deficit.

Note that a fund surplus or deficit is not an immediate asset or liability, but just a snapshot at that point of an extremely long term view of its position which will inevitably vary, sometimes substantially, year on year.

[careful] 10/12/2024 08:49

We all wish your lively 93 year old chum who you probably met at a disco all the best.
But maybe that particular liability will soon end.

This is quite a big issue with some pension funds. BT is one of them.
Hundreds of thousands of them seem to have been drawing over generous pensions for decades.
But it must be coming to an end, we do not live forever.

Latter day pensions are less generous.

[my retirement fund] 10/12/2024 01:03

I was on holiday last week and met an interesting chap called Shaun. He was on a six figure gold plated pension from his spell at Guinness. 93 years old. Said his pension was paying three times what his son who was a GP was on. He said he was the Chairman of Guinness for a while. Made me wonder what Diageos pension liabilities look like. They must be on the hook for literally bucket loads of six figure pensions given the countless numbers of brands they've taken out over the past half century.

[edwardt] 05/12/2024 21:06

Actually their results were out - pretty decent

[edwardt] 05/12/2024 19:00

Brown forman rocketing in states - maybe tariffs not imposed on spirits?

[philanderer] 05/12/2024 14:38

upgrade..

Jefferies raises Diageo to 'buy' (hold) - price target 2,800 (2,300) pence

[prokartace] 05/12/2024 14:19

Who said what at 1pm today?

[disc0dave46] 04/12/2024 20:23

Marketing been too good?Guinness supplies being limited after demand soars Https://www.bbc.com/news/articles/cx2v5z0wvwzo

[roguetraderuk] 04/12/2024 17:01

1850 would be a full retracement and v tempting from a tech perpective and poss on valuation grounds too

[philanderer] 04/12/2024 16:54

Looking to add but not just yet.

[essentialinvestor] 04/12/2024 12:18

MC, the more bitterness the better.

IPA usually comes out top, something like Proper Job - rather than a cheap supermarket own brand substitute.


I'm not tempted back in to DGE atm, they look in a challenging place, some will contest that's in the price.

[ricardo montalban] 04/12/2024 11:48

I have a weird feeling Diageo will do a capital raise🤔

[philanderer] 04/12/2024 10:27

Deutsche Bank cuts Diageo price target to 1,970 (2,000) pence - 'sell'

[suetballs] 04/12/2024 09:37

There is certainly a dearth of good financial news here.
Every day the share price seems to drip lower.
Will Santa help - I have serious doubts.
Suet - gloommy on prospects.

[mcunliffe1] 03/12/2024 12:49

In the absence of any financial good news surrounding Diageo, I found a report here:



that lists Guinness at the top of a list of beers that are deemed to be beneficial to your gut microbiome.

I have to disagree with the advice in the report that suggests some Guinness one night and some Newcastle Brown another night. Why not both on the same nights 🤣

[philanderer] 30/11/2024 16:45

Fears pubs could run our of Guinness before Christmas as bosses hold crunch talks over ‘surge in demand’ for drink

[anhar] 27/11/2024 11:33

My entry price at which I'd consider adding to the DGE holding in my diversified port remains about 1,600-1,700p as this would make a yield of about 5% on current divis and FX rates, attractive to me as an income investor. I agree debt funded buybacks were undesirable as they joined the fashion for this egregious practice in which everyone seems to be indulging, but I think it unlikely divis will be cut though naturally no guarantees.

DGE has an excellent divi record, which is why I continue to hold despite a sharp loss on the capital value. It's all about the income for me.

[billy two cocks] 26/11/2024 15:27

There are some people who perceived this as cheap at say £30, catching a falling knife. They're going to be a long way from the door when this finally plays out.

Buying their shares back at astronomical prices using borrowed money was never going to end well.

Opening a distillery in China will be a huge waste of shareholders money when the Chinese invade Taiwan. This will put potential suitors off.

On a less global note. I live in an all year round tourist beauty spot. My (very busy) local used to have Diageo products in abundance. Now, the Gordons is hidden behind several much smaller competitors as is the Captain Morgan. Scotch seems to be out of fashion and there seem to be plenty of new vodka brands around. Next time you're in your pub, have a count up, I did this all the time I as was holding DGE and spotted the decline in a very busy pub.

Can't see Guinness (Zero or normal) saving this, it's going to take a miracle to turn this round (or a buyout at a very low price).

Sub £20 by next year and a long way down to go from there. I would not be surprised if the dividend was cut too, after all, it's being paid using borrowed money.

My opinion.

Thanks

BTC

[philanderer] 26/11/2024 15:00

Diageo drops as Trump Mexico and Canada tariff pledges hit stocks


Diageo PLC (LSE:DGE) was among those hit in the wake of Donald Trump’s latest pledge to introduce sweeping tariffs on goods from Mexico and Canada.

Shares in the Guinness maker, which distils Don Julio tequila in Mexico and operates sites across the country, fell as much as 3.5% on Tuesday morning.

President elect Trump on Monday vowed to bring in 25% tariffs on goods from Mexico and Canada come his first day in office in January.

Trump would “sign all necessary documents to charge [a tariff] on all products coming into the United States, and its ridiculous open borders,” he said on his Truth Social platform.

XTB analyst Kathleen Brooks noted Diageo’s drop came given it was a “large exporter to the US”.

Ripples from Trump’s pledges hit a string of firms across London and Europe as well though, as fears grew of tariffs stretching to goods from elsewhere.

“Big overseas earners” JD Sports Fashion PLC (LSE:JD.) and Shell PLC (LSE:SHEL, NYSE:SHEL) dropped 2.6% and 0.5% respectively, AJ Bell analyst Dan Coatsworth pointed out, while carmaker Volkswagen Group (XETRA:VOW) also came under pressure.


Jefferies analyst Mohit Kumar noted the warning of tariffs was likely an “opening move for negotiations” and that they may “not end up as bad as feared”.

“But, we will see increased uncertainty over the coming months,” Kumar continued, “tariffs will further support the view of US over rest of the world from an investment perspective”.


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