Diageo Share Discussion Threads

[philanderer] 29/10/2015 11:45

Details:

Credit Suisse highlighted an increased focus on mainstream and ‘value’ brands

Diageo (LON:DGE) is set to outperform its rivals, according to Credit Suisse, which believes a newly accelerated focus on higher volume sales in mainstream and ‘value’ spirits will be a driver of growth.

Analyst Sanjeet Aujla, who upgraded the share to ‘outperform217; from ‘neutral’;, in a note said: “We believe DGE's increased focus on volume growth can help draw a line under two years of earnings downgrades.”

“We believe DGE's accelerated focus on mainstream/value spirits is a necessary move to broaden its pricing architecture, which creates new opportunities whilst addressing consumer polarisation and the high dependence on premium scotch.”

The Swiss investment bank’s price target is lifted to 2100p from 1780p.


proactiveinvestors.co.uk

[philanderer] 26/10/2015 13:16

Diageo plc (LON:DGE)‘s stock had its “outperform221; rating reaffirmed by equities research analysts at RBC Capital in a research report issued to clients and investors on Monday, Analyst Ratings Network.com reports. They currently have a GBX 2,000 ($30.63) price objective on the stock

[philanderer] 26/10/2015 11:22

'Diageo explains its new global campaign'

Diageo Global Travel and Middle East (GTME) held an event at TWFA Cannes to celebrate the new Johnnie Walker global campaign: 'Joy will take you further' and give an insight into how the campaign’s ethos will shape its wider plans for travel retail.

[philanderer] 23/10/2015 17:03

Funny old day :-)

[philanderer] 23/10/2015 09:56

Upbeat Diageo boss shrugs off rivals' £68bn beer merger,

[philanderer] 23/10/2015 01:07

Read across from Pernod Ricard thursday

'US lifts spirits group Pernod Ricard sales, China still difficult'

Read more at:

[philanderer] 22/10/2015 20:47

Diageo is putting its Chalone Vineyard winery up for sale after it was left out of last week’s £361 million deal with Treasury Wine Estates.

[philanderer] 16/10/2015 09:19

New coverage today from HSBC with 'hold' and target 1830p

plus

16th oct RBC Capital outperform tp 2000p

reiterates

[philanderer] 15/10/2015 20:36

Diageo (DEO) Shares Cross Above 200 DMA

[ygor706] 15/10/2015 10:38

EI..........not the strongest balance sheet in the world I would agree but strategic focus is not doing much for the bottom line thus far. It is also raising questions in my mind about the true value of intangibles and whether impairment is an issue.

[essentialinvestor] 15/10/2015 10:22

ygor, would see it differently, it's more strategic focus with the additional
benefit of debt reduction imv.

[ygor706] 15/10/2015 10:20

All these disposals are beginning to make me think that the Board is beginning to create a war chest. Personally, I don't altogether buy off on this "peripheral business" chat when interest rates are at close to zero and the operations involved are consistently profitable and perhaps even higher margin than pure spirits. The SAB Miller takeover will result in all manner of opportunities arising as a result of regulatory constraints and third parties having to reshuffle their interests in order to get something that they want. Is Diageo paving the way for a biggish acquisition or is it going to end up as a juicey titbit for some larger entity?

[philanderer] 15/10/2015 09:56

Diageo continues to focus on core business with wine disposal

Drinks retailer Diageo (DGE) has announced it will sell its wine interests as part of its refocus on core markets.

Shore Capital analyst Phil Carroll retained his ‘hold’ recommendation without a target price for the stock. Diageo dipped 1%, or 19p, to close at £18.24 yesterday.

‘Diageo has announced that it has agreed the sales of its major wine interests in an agreement with Treasury Wine Estates relating to the US-based Chateau and Estate Wines and the UK-based Percy Fox businesses for a consideration of $552 million,’ he said.

‘The net proceeds of approximately £320 million, after tax and transaction costs, will be used to repay borrowings… [the] announcement represents further progress in management’s strategy of non-core asset disposals, which is being used to deleverage the group’s balance sheet post a number of acquisitions in recent years in emerging markets and a slowdown in the group’s operating performance.

‘Overall, we take [the] statement as positive and further evidence of management executing its growth strategy by driving a greater focus on its core business.’

[philanderer] 15/10/2015 08:58

Most bullish broker to date..

15th oct Berenberg buy tp 2350p

reiterates

[philanderer] 14/10/2015 20:21

Philip Gorham, analyst at Morningstar, said: 'The sale of the US business Chateau & Estate Wines includes the Beaulieu Vineyard and Sterling Vineyards brands, and Percy Fox in the United Kingdom. The transaction value is not particularly favourable for Diageo.

'This transaction represents another step in Diageo's strategy of focusing on its core business. Wine is a fragmented and competitive business with much lower brand loyalty than spirits, and it is in spirits that Diageo's core competencies and competitive advantages lie.

'Its brand portfolio is a source of its wide economic moat, and with leading positions in some high-volume categories, Diageo's category captains help ensure primary shelf space, particularly in the off-trade.'

[redartbmud] 14/10/2015 11:44

It's official - they are engaged over a pitza.

[philanderer] 14/10/2015 11:39

Thanks EI, I still can`t bring myself to sell DOM , german and swiss expansion to come hopefully.

[essentialinvestor] 14/10/2015 09:27

Morning Phil, nice day for you with DOM, which has now doubled since
I decided not to buy as it looked expensive, oh dear, congrats.

£320M off debt it looks like reading this morning's statement.

Heavily in cash atm as expecting another down draft for markets,
difficult to read though and may be calling this incorrectly.

Bought some RMG yesterday on the placing dip, will add further close to 4.40 if available.

[philanderer] 14/10/2015 09:07

EI , I remember that advert.. j'adore Le Piat d'Or

Blue Nun as well ;-D

[redartbmud] 14/10/2015 08:45

Diageo continues to be the guarantor under the June 2010 sale and leaseback agreement and in accounting for the disposal Diageo has fair valued the guarantee assuming it expires in 2030.

What does this mean in real terms?
Is there a contingent liability, and if so can it be quantified?

In addition, there is an exceptional loss of £150m.
How desperate were that to dunp the business?

[essentialinvestor] 14/10/2015 08:41

I used to drink Le Piat d'OR as a teenager and thought myself wonderfully
sophisticated )

[essentialinvestor] 14/10/2015 08:37

Another approx £200 off debt ?