Diageo Share Discussion Threads

[1nf3rn0] 27/1/2023 15:34

Buy rating in The Times Tempus column

They note that valuation is a just below the 10 year average, and in conclusion:

"The shares have the potential to produce consistent returns ahead of the market over the long term"

Which I expect is what all holders believe anyway, which is why we're here :)

[disc0dave45] 27/1/2023 14:47

Rare to see this technically oversold, so took some more to average down.Does seem to be some shift out of defensives but IMO inflation whilst reducing isn't going to just disappear overnight.

[careful] 27/1/2023 13:46

The lower cash flow numbers and increased debt must set against the increased profit and some exciting acquisitions.

Hard to understand the outcome but the management here has always been competent.

I myself have been putting cash to work the last 2 days buying more DGE.

[1nf3rn0] 27/1/2023 13:41

Agreed.Seems there's some rotation at the moment from the likes of Diageo, Unilever, Reckitt to the riskier stuff - airlines, house builders, etc. But the likes of Diageo are near enough guaranteed to be long term solid investments with little to worry about.

[essentialinvestor] 27/1/2023 13:33

1nf, If you can pick these up on around 17 X forward earnings that's a definite bargain, barring something cataclysmic!.

Around 19.8 X forward ATM.

[1nf3rn0] 27/1/2023 13:31

I'll be filling my boots at 2650 (if I could avoid temptation to do so at 3000 on the way there!)

[essentialinvestor] 27/1/2023 13:31

Added a small amount. I don't like the recent increase in net debt
and the rating is not a giveaway price by any means. But a quality stock.


I've still not tried Guinness Extra Foreign stout, which gets some great
reviews, Abv is over 7% so it packs a big punch.

[careful] 27/1/2023 13:23

Not implying that we should take target prices seriously, but interesting.

Average of Goldman/Stifel/Credit Suisse/Barclays.(4) 4570.
Deutsche 2650.

Amazing how Deutsche are 42% lower that average of the other 4.

[tuftymatt] 27/1/2023 12:45

Yeah a mixed bag that's for sure!!

The US concern and will it knock on to other regions is the million dollar question.
The gift I mentioned yesterday has just got bigger or you could view it in a different way. I have added / averaged down today but don't have a big position so won't panic if it drops further.

[careful] 27/1/2023 12:44

Phil
you listed the miserable Deutsche target price twice, but the other 4 target prices are reassuring.

[philanderer] 27/1/2023 12:31

All over the place ;-)



Deutsche Bank cuts Diageo price target to 2,650 (2,750) pence - 'sell'

Goldman Sachs cuts Diageo price target to 4,500 (4,700) pence - 'buy'

Stifel cuts Diageo price target to 4,480 (4,820) pence - 'buy'

Credit Suisse cuts Diageo price target to 4,200 (4,500) pence - 'outperform'

Barclays raises Diageo price target to 5,100 (5,010) pence - 'overweight'


edit

[philanderer] 27/1/2023 01:03

'EXPERT' VIEWS

Edison’s Neil Shah commented: ‘The glass remains more than half full for Diageo after a strong set of results in the face of industry inflation.’

Shah added that ‘shareholders will raise a glass at the company’s pledge to return up to an addition £0.5 billion of capital to shareholders in fiscal year 2023.’

Charlie Huggins, head of equities at Wealth Club, stressed that Diageo looks better placed than most to weather the storm.

‘It is much easier to raise prices on a bottle of Johnnie Walker than on a bottle of shampoo or deodorant. So Diageo ought to have more pricing power than most consumer goods peers. This is a key reason for its resilient margins.

‘If the economy hits the rocks, Diageo may see some downtrading to less expensive brands. But it’s unlikely consumers will cut back significantly on alcohol. And long-term premiumisation trends are unlikely to abate.

‘Overall, Diageo is demonstrating why it is considered a high-quality long-term compounder. While short-term blips can’t be ruled out, investors who abide by the famous Guinness slogan - “Good things come to those who wait” - could be rewarded.’


sharesmagazine.co.uk

[philanderer] 27/1/2023 00:40

Diageo shares fall as US sales growth slows

Investor reaction comes despite otherwise robust half-year results at drinks group

“Questions around the health of the US consumer continue,” said Simon Hales, an analyst at Citi.

[careful] 26/1/2023 17:23

Mug Punters often go long ahead of results when results are assumed to strong, as todays were.
They get margined out...house wins, when it spikes down.

I have been caught by such crooked tactics whilst trading CFD'S.
On occasions I have been margined out, triggering stop losses after price spikes lasting a couple of seconds.

Better to ignore the share prices on results day, they are about as honest as Rick's roulette wheel in Casablanca, or the poker game on the train in the Sting.

Who is the best cheat.

[billy two cocks] 26/1/2023 14:05

The boys and girls will mess about on days like these. Gift.

[tuftymatt] 26/1/2023 14:00

Took some more as the share gods are starting to take back the gift they have offered up today!!

[tuftymatt] 26/1/2023 12:43

I picked a few up earlier today.
The only reason I have never directly owned this is the low dividend but at this price I struggle to see why it's been hit so hard this morning.

Good luck all 👍🏻

[j777j] 26/1/2023 12:34

Great business tequila and Johnny walker both up almost 30%
Guinness biggest selling beer brand in UK

[nk104] 26/1/2023 11:18

I first bought this in 2008/9 at £8.35 and have held continuously since. It's a well managed business with decent ROCE. Today was a chance for a top-up!

[essentialinvestor] 26/1/2023 11:07

Only up 800% in 20 years. You complete Muppet.

That's Without dividends.

[danb45] 26/1/2023 11:05

whatevs - I'm 40% up on price now with £600 dividends paid - not complaining

[porsche1945] 26/1/2023 10:56

Same price as June 2019 with a 2 pc dividend. Another pointless growthless ftse 100 crxp share.

[billy two cocks] 26/1/2023 10:44

Gross over-reaction. Watch this recover and some when the market makers have had their fun. Excellent results.