Diageo (DGE)

Sector:

Beverages

Index:

FTSE 100

2,017.00p
   
  • Change Today:
      1.00p
  • 52 Week High: 2,712.50
  • 52 Week Low: 1,976.50
  • Currency: UK Pounds
  • Shares Issued: 2,225.28m
  • Volume: 7,736,713
  • Market Cap: £44,884m
  • RiskGrade: 122

Jefferies rates Diageo a 'buy' amid Ciroc sale rumours

By Benjamin Chiou

Date: Friday 20 Dec 2024

LONDON (ShareCast) - (Sharecast News) - Jefferies has reiterated a 'buy' rating for Diageo on the back of speculation that the drinks giant is considering a sale of its Ciroc brand, saying that any potential sale would be accretive to top-line growth.
A Bloomberg report on Thursday said that Diageo has approached potential bidders to gauge interest regarding the sale of its vodka brand, Ciroc.

The speculation follows a breakdown in the relationship with once-brand ambassador and co-owner Sean 'Diddy' Combs, who is current facing allegations of racketeering and sex trafficking.

Jefferies cited IWSR data which suggests that Ciroc amounted to 1.4m cases and $1.47bn in retail sales in 2023, which the broker said equates to 0.5% of Diageo's group volumes and 2-3% of sales.

"We have detected a decreasing emphasis placed on the brand, which saw an organic sales decline of -26% in F24. We estimate that the disposal could be accretive >50bps to group growth," the broker said.

Regarding the wider group's business, Jefferies said 2025 will be a "trough year" for Diageo, with a recovery expected thereafter.

"Companies do not change overnight; however, we think that Diageo will start to look different as confidence in spirits growth increases and under a new, heavyweight CFO, where we expect to see a renewed focus on growth, profit and cash," the broker said.

Jefferies kept a 2,800p target price for the stock, which was down 1% at 2,501p by 1026 GMT.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Diageo Market Data

Currency UK Pounds
Share Price 2,017.00p
Change Today 1.00p
% Change 0.05 %
52 Week High 2,712.50
52 Week Low 1,976.50
Volume 7,736,713
Shares Issued 2,225.28m
Market Cap £44,884m
RiskGrade 122

Diageo Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
26.56% below the market average26.56% below the market average26.56% below the market average26.56% below the market average26.56% below the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Price Trend
58.14% below the market average58.14% below the market average58.14% below the market average58.14% below the market average58.14% below the market average
66.67% below the sector average66.67% below the sector average66.67% below the sector average66.67% below the sector average66.67% below the sector average
Income
20.00% above the market average20.00% above the market average20.00% above the market average20.00% above the market average20.00% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Growth
63.61% below the market average63.61% below the market average63.61% below the market average63.61% below the market average63.61% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average

What The Brokers Say

Strong Buy 9
Buy 5
Neutral 6
Sell 4
Strong Sell 1
Total 25
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Diageo Dividends

  Latest Previous
  Interim Final
Ex-Div 27-Feb-25 29-Aug-24
Paid 24-Apr-25 17-Oct-24
Amount 31.48p 47.23p

Trades for 30-May-2025

Time Volume / Share Price
16:20 0 @ 2,026.00p
16:20 0 @ 2,026.00p
16:20 0 @ 2,026.00p
16:20 0 @ 2,026.00p
16:20 0 @ 2,026.00p

Diageo Key Personnel

CEO Debra Crew
Chair John Alexander Manzoni
CFO Nik Jhangiani

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