Diageo (DEO) Downgraded to Hold at Zacks Investment Research
Diageo (NYSE:DEO) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Friday.
According to Zacks, “Shares of Diageo have outperformed the industry in the past one year, driven by its strong fundamentals, continuous innovation and focus on expansion. Also, the company’s strategic endeavors including growth via acquisitions remain noteworthy. In fact, the buyout of the U.S. fastest-growing premium tequila brand, Casamigos, is expected to boost its market share and is likely to capitalize on the company’s presence in the high-growth international markets. Notably, alcohol stocks are doing well backed by the rising demand for flavored whisky, premium tequilas and spirits. However, currency fluctuations pose a serious concern for the company. Macroeconomic factors such as interest rate hikes and increase in energy costs may also impact the company’s profitability. Further government restrictions on alcohol consumption also act as a formidable threat to the company’s performance.”
A number of other brokerages also recently issued reports on DEO. Jefferies Group set a $157.00 price objective on Diageo and gave the stock a “buy” rating in a research report on Thursday. Evercore ISI started coverage on Diageo in a research report on Thursday, September 28th. They set an “outperform” rating and a $152.00 price objective for the company. Two equities research analysts have rated the stock with a sell rating, three have assigned a hold rating and five have issued a buy rating to the company. The stock currently has a consensus rating of “Hold” and an average price target of $156.00.
Institutional investors have recently made changes to their positions in the stock. Gotham Asset Management LLC purchased a new position in Diageo during the 2nd quarter valued at about $278,000. Crossmark Global Holdings Inc. purchased a new position in Diageo during the 3rd quarter valued at about $3,257,000. HS Management Partners LLC boosted its holdings in Diageo by 3.1% during the 2nd quarter. HS Management Partners LLC now owns 1,560,354 shares of the company’s stock valued at $186,977,000 after acquiring an additional 46,975 shares during the period. Quantitative Investment Management LLC purchased a new position in Diageo during the 2nd quarter valued at about $4,637,000. Finally, Ameriprise Financial Inc. boosted its holdings in Diageo by 5.3% during the 2nd quarter. Ameriprise Financial Inc. now owns 68,624 shares of the company’s stock valued at $8,227,000 after acquiring an additional 3,446 shares during the period. Institutional investors own 12.04% of the company’s stock.
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Diageo Company Profile
Diageo PLC is an alcoholic beverage company. The Company operates in various categories, including spirits and beer. Its geographic segments include North America; Europe, Russia and Turkey; Africa; Latin America and Caribbean, and Asia Pacific. Its principal products includes Scotch whisky, Gin, Vodka, Rum, Beer, Irish Cream Liqueur, Wine, Raki, Tequila, Canadian Whisky, American Whiskey, Progressive Adult Beverages, Cachaca, Brandy and Ready to Drink.
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