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 Wednesday, December 27th. The firm presently has a $160.00 target price on the stock. Zacks Investment Research‘s price target indicates a potential upside of 11.12% from the company’s previous close.
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. However, currency fluctuations pose a serious concern for the company. Macroeconomic factors such as interest rate hikes and increase in fuel and energy costs may also impact the company’s profitability.”
Other equities research analysts have also recently issued reports about the company. Berenberg Bank cut Diageo from a “buy” rating to a “hold” rating in a research report on Wednesday, September 13th. Evercore ISI initiated coverage on Diageo in a report on Thursday, September 28th. They issued an “outperform” rating and a $152.00 target price on the stock. Finally, Jefferies Group reissued a “buy” rating and issued a $154.20 target price (up previously from $142.25) on shares of Diageo in a report on Friday, September 1st. Two analysts have rated the stock with a sell rating, two have given a hold rating and six have assigned a buy rating to the stock. Diageo presently has an average rating of “Hold” and an average price target of $156.00.
Hedge funds have recently bought and sold shares of the business. Family Capital Trust Co bought a new position in Diageo in the third quarter valued at about $119,000. Tower Research Capital LLC TRC lifted its holdings in Diageo by 404.4% in the second quarter. Tower Research Capital LLC TRC now owns 1,039 shares of the company’s stock valued at $125,000 after acquiring an additional 833 shares during the period. Rockefeller Financial Services Inc. bought a new position in Diageo in the third quarter valued at about $125,000. Quadrant Capital Group LLC lifted its holdings in Diageo by 11.4% in the second quarter. Quadrant Capital Group LLC now owns 1,391 shares of the company’s stock valued at $142,000 after acquiring an additional 142 shares during the period. Finally, Acrospire Investment Management LLC lifted its holdings in Diageo by 62.5% in the second quarter. Acrospire Investment Management LLC now owns 1,300 shares of the company’s stock valued at $156,000 after acquiring an additional 500 shares during the period. 12.04% of the stock is currently owned by institutional investors.
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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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