Diageo (NYSE:DEO) Stock Rating Upgraded by BNP Paribas Exane

Diageo (NYSE:DEO) was upgraded by stock analysts at BNP Paribas Exane from an “underperform” rating to a “neutral” rating in a research report issued to clients and investors on Wednesday, MarketBeat.com reports.

Several other analysts have also recently weighed in on the company. UBS Group reissued a “neutral” rating on shares of Diageo in a report on Wednesday, December 3rd. Royal Bank Of Canada raised shares of Diageo from a “sector perform” rating to an “outperform” rating in a research note on Tuesday, January 6th. Argus upgraded shares of Diageo to a “hold” rating in a research report on Tuesday, March 10th. Sanford C. Bernstein set a $124.00 price target on shares of Diageo and gave the stock an “outperform” rating in a research note on Monday, December 29th. Finally, Zacks Research upgraded shares of Diageo from a “strong sell” rating to a “hold” rating in a report on Monday. Five analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Diageo currently has an average rating of “Hold” and a consensus price target of $116.50.

Diageo Stock Performance

Shares of DEO opened at $73.72 on Wednesday. The company has a quick ratio of 0.71, a current ratio of 1.60 and a debt-to-equity ratio of 1.53. Diageo has a 12-month low of $72.45 and a 12-month high of $116.69. The stock’s fifty day simple moving average is $88.00 and its 200-day simple moving average is $91.16.

Hedge Funds Weigh In On Diageo

Institutional investors have recently modified their holdings of the stock. Integrated Advisors Network LLC raised its position in shares of Diageo by 3.5% in the 3rd quarter. Integrated Advisors Network LLC now owns 3,110 shares of the company’s stock valued at $297,000 after acquiring an additional 104 shares during the period. Glenview Trust Co grew its holdings in Diageo by 3.7% during the fourth quarter. Glenview Trust Co now owns 2,928 shares of the company’s stock valued at $253,000 after purchasing an additional 104 shares during the period. Retirement Planning Co of New England Inc. increased its stake in Diageo by 2.0% in the third quarter. Retirement Planning Co of New England Inc. now owns 5,684 shares of the company’s stock valued at $542,000 after purchasing an additional 114 shares in the last quarter. Mission Wealth Management LP increased its stake in Diageo by 4.0% in the fourth quarter. Mission Wealth Management LP now owns 2,992 shares of the company’s stock valued at $258,000 after purchasing an additional 114 shares in the last quarter. Finally, Wynn Capital LLC raised its holdings in Diageo by 2.5% in the fourth quarter. Wynn Capital LLC now owns 4,994 shares of the company’s stock worth $431,000 after purchasing an additional 122 shares during the period. 8.97% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Diageo

Here are the key news stories impacting Diageo this week:

• Positive Sentiment: Diageo agreed to sell its Royal Challengers Bengaluru (RCB) IPL/WPL franchise to a Blackstone-backed consortium for about $1.8 billion, a large one-off disposal that will generate significant cash for the group and was the outcome of a strategic review. Article Title
• Positive Sentiment: Analysts estimate Diageo could net more than $1 billion from the sale after the United Spirits ownership structure — a sizable cash inflow that can be used to pay down the group’s elevated debt or fund other priorities. Article Title
• Positive Sentiment: UBS called the sale a “rich valuation” (reported multiple ~54x EBITDA) and said the timing — after RCB’s recent success — makes the transaction strategically helpful for the new CEO to chip away at Diageo’s debt burden. Article Title
• Positive Sentiment: Several broker moves reflect reduced near-term downside risk: BNP Paribas Exane upgraded Diageo from “underperform” to “neutral,” and Zacks moved it from “strong sell” to “hold,” which may steady sentiment after the disposal news. Finviz Note Zacks Note
• Negative Sentiment: Offsetting the positive cash story, at least one outlet reports a downgrade from “buy” to “hold,” reflecting lingering concerns about Diageo’s valuation, leverage and near-term performance that could pressure the share price despite the sale. Article Title

Diageo Company Profile

Diageo plc is a global producer, marketer and distributor of alcoholic beverages, headquartered in London, England. The company was created through the 1997 merger of Guinness plc and Grand Metropolitan plc and is publicly traded on multiple exchanges, including the New York Stock Exchange (NYSE: DEO) and the London Stock Exchange. Diageo operates a worldwide business, selling products in a broad range of markets across the Americas, Europe, Africa, Asia and Latin America.

Diageo’s core activities cover the production, marketing and sale of a diverse portfolio of spirits, beer and liqueurs.