Diageo Share Discussion Threads

[major clanger] 06/9/2013 10:22

A little more on the Citi upgrade (courtesy of BrokerForecasts.com):

The Spirit of Growth
Buying opportunity – We resume coverage with a Buy rating, following a period of
restriction. The shares have pulled back 8% since early August. Diageo is now
trading on 16.9x CY14E earnings, a mere 1% premium to Pernod and at a discount
to the European staples' average. In our view this doesn't reflect the attractions of the investment case: (1) resilient growth in the current weak EM environment and (2) significant long-term opportunities in EMs.

[miata] 06/9/2013 09:33

15.7% target upside.

[broadwood] 06/9/2013 07:40

Citigroup Diageo PLC 06/09/2013
Upgrades
Neutral Buy 2 1,830.00 2,320.00 1,977.50 490 2

[broadwood] 07/8/2013 07:17

There's quite a thirst for these.

Bank of America Merrill Lynch Diageo PLC 07/08/2013
Reiterates
Buy Buy 0 2,250.00 2,450.00 2,136.50 200 2

[miata] 31/7/2013 09:01

Diageo, the world's biggest drinks company, has fallen short of a target to grow annual sales by 6pc after it experienced difficult trading conditions in a number of emerging markets, including China,where there has been a crackdown on government entertaining, and Nigeria.

In Western Europe net sales slumped 4pc as hard-pressed consumers in the southern Mediterranean countries and Ireland continue to rein in their spending.

[miata] 31/7/2013 08:55

Final dividend of 29.30 pence per share to be paid on 3 October 2013 to shareholders on the register on 16 August 2013.

[broadwood] 31/7/2013 07:14

That'll do nicely.

"These results reflect Diageo's strengths. We have delivered 5% net sales growth reflecting the strength of our US spirits business and continued double digit growth in the emerging markets, despite weakness in some markets. Price increases in each region, positive mix in North America and Latin America and the rigour we have in managing our cost of production and controlling our overheads drove significant expansion in operating margin.
The effectiveness of our marketing campaigns remains a competitive advantage for us and this year we have seen these campaigns extend the leadership of our brands in many markets during the year. This has been a key driver of our performance in scotch, our biggest and most profitable category, especially for Johnnie Walker which is now a 20 million case brand. Innovation is driving growth in every region, with our biggest launches in US spirits where we continue to lead the innovation agenda in the industry. Elsewhere, the investments we have made to enhance our routes to market in Africa, Latin America and Eastern Europe have driven strong growth.
The breadth of our good performance is reflected in the strength of the cash flow, in our double digit eps growth and a recommended 9% increase in the final dividend. This year we have again made a strong business stronger and we remain on track to deliver our medium term guidance."

[phoenix1234] 10/7/2013 17:55

Diageo: a share that looks ten percent overbought

[stephanie_m] 05/7/2013 07:54

Class company

[deadly] 25/6/2013 13:21

Very astute comment

[deanforester] 13/5/2013 17:02

It looks like you can't keep a good share down.

[broadwood] 07/5/2013 06:40

Diageo CEO Paul Walsh, one of FTSE 100's longest-serving bosses, to retire, I've learnt. Company to appoint Ivan Menezes as successor today

[artibee] 18/4/2013 13:00

talk about 'buy the dips'!

[broadwood] 18/4/2013 07:16

Happy enough.




'Our performance in the quarter was robust and again demonstrates Diageo's strengths, global reach and category breadth and depth. Therefore despite consumer weakness in three markets, Korea, Nigeria and Brazil, Diageo's performance for the nine months is in line with the first half and our expectations. Strong performance from our biggest business, US spirits; the continued growth of spirits in Africa; share gains across our markets in Asia Pacific and double digit growth of Johnnie Walker, Crown Royal, Buchanan's, and Tanqueray are the highlights of the quarter. Given our market positions and geographic diversity we remain confident that Diageo's performance continues to be in line with our medium term guidance.'

[broadwood] 11/4/2013 11:28

Blimey, look at that TP.

Goldman Sachs Diageo PLC 11/04/2013
Retains
Buy Buy 0 2,220.00 2,730.00 1,987.50 510 2

[broadwood] 10/4/2013 08:05

So it seems that the fall was attributable to them not getting a majority stake in United Spirits.

[miata] 09/4/2013 12:52

Jefferies

We reiterate BUY and raise our PT to 2,300p (previously 1,915p) as we continue to believe that Diageo's geographic footprint (73% Emerging markets + N-America) and strong brand portfolio, especially in Scotch will deliver 7% organic top-line growth in the coming five years. The consolidation of United Spirits (once the deal closes) will further boost the top-line by c 75bps and push Diageo's emerging market exposure to just shy of the 50% target. Strong cost control and a tangible self-help element, means we see margins up an average 90bps pa, delivering a 13% EPS CAGR in the coming 5 years. A strong balance sheet (1.5x net debt/EBITDA in F-14) means that there is upside optionality from further M&A activity.

We expect an improvement in top-line growth when Diageo releases its Q3 IMS on 18 April, with group organic revenue growth of 7%, vs the 5% reported at H1. We estimate this will be driven by: (i) an improvement in W-European growth (from -5.6% at H1 to -2.5% in Q3) as the Spain destocking is less severe (ii) higher North American growth (5.5% in Q3 vs 4.7% at H1) and (iii) a rebound in Asia Pacific growth rates (to 11.5% in Q3 vs 5.5% at H1 stage) as the one-offs holding back Q2 (phasing of shipments in travel retail) unwind.

[broadwood] 09/4/2013 12:18

Mystery. I guess a note out - not published yet.

[5eights] 09/4/2013 12:14

Why the sell off? 150p in 5 sessions is fairly substantial. Are we simply taking a breather?

[miata] 09/4/2013 10:13

09 Apr Diageo PLC DGE Jefferies Buy 1,980.00 2,017.00 1,915.00 2,300.00 Retains

09 Apr Diageo PLC DGE Nomura Buy 1,980.00 2,017.00 2,040.00 2,400.00 Retains

[broadwood] 09/4/2013 07:25

Two Brokers increasing TP's today.

[broadwood] 20/3/2013 14:55

Beer the winner then.

As expected the usual inflationary rise for wines and spirits