Diageo (DEO) Lifted to “Buy” at Zacks Investment Research

Diageo (NYSE:DEO) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Monday. The firm presently has a $163.00 target price on the stock. Zacks Investment Research‘s price target points to a potential upside of 12.17% from the stock’s current price.

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 in the category 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. Further the company has been striving toward expanding its presence in emerging regions as well as focus on high-margin products. However, currency fluctuations as well as other macroeconomic factors such as interest rate hikes and increase in fuel and energy costs may also impact the company’s profitability.”

DEO has been the topic of a number of other reports. Evercore ISI began coverage on Diageo in a report on Thursday, September 28th. They set an “outperform” rating and a $152.00 price target on the stock. Jefferies Group reaffirmed a “buy” rating and set a $155.40 target price (up from $155.20) on shares of Diageo in a research report on Saturday, September 30th. Two analysts have rated the stock with a sell rating, two have assigned a hold rating and six have issued a buy rating to the company’s stock. Diageo has an average rating of “Hold” and an average price target of $156.25.

Diageo (DEO) traded up $0.07 during trading on Monday, hitting $145.31. The company’s stock had a trading volume of 435,337 shares, compared to its average volume of 416,718. The company has a market cap of $90,490.00, a PE ratio of 24.34, a price-to-earnings-growth ratio of 2.89 and a beta of 0.75. Diageo has a 52-week low of $106.61 and a 52-week high of $147.06. The company has a debt-to-equity ratio of 0.58, a current ratio of 1.30 and a quick ratio of 0.58.

Several large investors have recently modified their holdings of DEO. Family Capital Trust Co acquired a new position in shares of Diageo during the third quarter worth approximately $119,000. Tower Research Capital LLC TRC raised its position in shares of Diageo by 404.4% during the second quarter. Tower Research Capital LLC TRC now owns 1,039 shares of the company’s stock worth $125,000 after purchasing an additional 833 shares during the period. Rockefeller Financial Services Inc. acquired a new position in shares of Diageo during the third quarter worth approximately $125,000. Quadrant Capital Group LLC raised its position in shares of Diageo by 11.4% during the second quarter. Quadrant Capital Group LLC now owns 1,391 shares of the company’s stock worth $142,000 after purchasing an additional 142 shares during the period. Finally, UBS Asset Management Americas Inc. raised its position in shares of Diageo by 124.4% during the second quarter. UBS Asset Management Americas Inc. now owns 1,479 shares of the company’s stock worth $177,000 after purchasing an additional 820 shares during the period. 12.03% of the stock is currently owned by institutional investors.

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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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