NYSE:DEO

Diageo PLC (DEO)

80.24
-0.19 (0.24%)
as of Jun 8, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJun 8, 2026, 12:00 am

This summary was created by AI, based on 6 opinions in the last 12 months.

Diageo PLC has faced significant challenges recently, including an 80% cut to their dividend, signaling a troubling shift in the company's trajectory. Analysts express concerns about declining consumption among younger demographics and increased competition from alternative beverages, such as cannabis. The company, known for its premium-brand focus, has seen sales decline, notably in Agave, and has faced distribution issues. Furthermore, there is skepticism about the efficacy of the new CEO's turnaround strategies. While some analysts believe there is potential for recovery, the consensus is more cautious given the current state of the business and external pressures.

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Consensus
Sell
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Valuation
Overvalued
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HOLD

Neutral on fate of company. Drop in valuation good, but moving towards a fair valuation at current price. Would be good to hold, or wait to buy on weakness. Premium offering of alcoholic spirit selection. 

TOP PICK
By far the largest distributor of alcohol beverages globally. Focusing on premium brands(higher margins). Sales rising which creates good profits. Able to buy emerging brands such as George Clooney's vodka brand. Rebound in travel increasing demand for alcohol. High dividend yield is good for investors. Not worried about looming recession, but high end products/brands won't be affected.
SELL
He sold this. No compelling reason to own it. It recovered with the market and offers reasonable metrics, but there are better stocks--he wants good cash flow to protect him in a downturn. He's getting picky.
SELL
He sold Diageo recently, because it scored poorly in valuation and dividend (decelerating). Consumers may buy fewer of their brands because of hot inflation. He owned this for a long time, but it was time to move on.
PAST TOP PICK
(A Top Pick Jul 28/21, Down 6%) Is the fastest-growing spirits/drinks company now with revenue growth nearing 10%. It carries a huge portfolio of premium brands which are immune to a recession. DEO is a core holding. A world-class business.
TOP PICK
#1 player globally. Focused on higher-end brands in all of the sectors they're in. So they can charge more, and their margins are growing. Spirits are gaining space on the shelf. Organic growth of 4-5%. Beverages are all about distribution, and they have the best. No one like them in the sector. Dividends grow over time. Yield is 1.58%. (Analysts’ price target is $200.07)
WEAK BUY
People are probably drinking a little more than they otherwise would. He was negative before COVID-19 because all their growth was by tuck-in acquisitions. Cannabis has unrealistic expectations.
TOP PICK
It is being impacted by CoVid19 because sales are down in China and fewer travelers aren't buying them. They have great brands, margins and solid dividend growth. They should do well in a recessionary environment. It is a great opportunity to get into a great business that has been too expensive for a while. (Analysts’ price target is $179.61)
DON'T BUY
Fine company and well known. It is a source of funds when the economy is improving. It is a cyclical market so it is not timely. It is a defensive company but this is not the time to be defensive.
DON'T BUY
They've done an amazing job positioning in the high-end spirits business. It's had a great run but the PE is 26x with mid-single-digit growth. There's little room to grow in this mature industry.
DON'T BUY
Trades at a high 25x earnings for a rock-solid group of beverages with decent dividend growth. Overall, it's too pricey for him.
SELL ON STRENGTH
He took some profits. Pays a decent 2-3% yield. It didn't do well in the mid-2010s, and today's price is slightly ahead performance. DEO is very well run and a play on rising middle-class incomes in emerging markets.
BUY ON WEAKNESS
A alcohol drinks company, trading at a high 21x earnings. Well-run. They've made and integrated good acqusitions, and have spent money on developing new products as well as marketing/sales. The U.S. is their best market. Great free cash flow. A lot of these companies are thinking of cannabis. DEO sells all over the world. Buy on pullbacks--they have periods when margins reduce when they launch products with marketing.
DON'T BUY
World's largest alcoholic beverage company in the world. Minimum growth business in the last couple of years, Solid dividend payer. You are paying above market multiple for a very low growth company.
DON'T BUY

Following the crowd on cannabis infused drinks. Problem is they’re not growing, free cash flow is falling. Going to have to cut costs. Slowdown in North America and Europe, and now Asia is not booming. Difficult to understand how they’re going to infuse alcohol with cannabis.

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