London, June 29, 2026, 14:01 BST
- Diageo was last up 1.24% at 1,596p even as the FTSE 100 edged down. The shares are still off about 25% from the 52-week high.
- TD Cowen’s Robert Moskow just raised his view to Buy with a 1,750p target. Morgan Stanley’s Sarah Simon went with a 1,410p target earlier this month, leaving the board divided.
- U.S. performance remains the big test. Diageo reported high-single-digit drops in North America organic net sales for its fiscal third quarter. CEO Dave Lewis called the region the company’s “biggest challenge.” Diageo
Diageo plc (LON:DGE) climbed in London Monday, outperforming the FTSE 100 as traders looked to cost cuts and broker upgrades, setting aside lagging U.S. spirits sales. The London Stock Exchange was open as usual, with trading from 0800 to 1630 local time.
Davy quoted Diageo at 1,596.00p, up 19.50p, or 1.24%, at 1401 BST with a 20-minute lag. Shares opened at 1,571.00p, hit a low of 1,556.10p, and pushed to 1,598.50p. That set a 2.7% range for the day against Friday’s close.
| Market tape | Last quoted price | Day move | Distance from 52-week high |
|---|---|---|---|
| Diageo plc (LON:DGE) | 1,596.00p | up 1.24% | down 25.5% from high |
| FTSE 100 | 10,494.74 | off 0.13% | nearly 4.0% below high |
| Pernod Ricard SA (EPA:RI) | €66.52 | up 0.85% | off 38.1% from 52-week peak |
| Rémy Cointreau SA (EPA:RCO) | €43.88 | added 1.06% | down 29.6% |
| Davide Campari-Milano NV (BIT:CPR) | €5.50 | rose 0.70% | off 19.5% |
The number to watch for Diageo isn’t just Monday’s move. Shares finished at 1,596p, still 154p under TD Cowen’s fresh 1,750p target, and 186p over Morgan Stanley’s 1,410p. The spread points to a shift—the market focus here is if Lewis can drive growth from his cost cuts, more than just value.
| Recent analyst calls on Diageo | Analyst | Firm | Date | Rating/action | Target | Implied move vs 1,596p |
|---|---|---|---|---|---|---|
| Berenberg | Javier Gonzalez Lastra | Berenberg Bank | June 26 | Buy, kept | 2,223p | +39.3% |
| TD Cowen | Robert Moskow | TD Cowen | June 26 | Raised to Buy | 1,750p | +9.6% |
| Deutsche Bank | Mitch Collett | Deutsche Bank | June 24 | Buy, kept | 1,759p | +10.2% |
| Morgan Stanley | Sarah Simon | Morgan Stanley | June 9 | Sell, kept | 1,410p | -11.7% |
Diageo reported just 0.3% organic net sales growth for its May fiscal third quarter. Volumes ticked up 0.4%, but price and mix dipped 0.1%. The company saw at least high-single-digit growth in Europe, Latin America and the Caribbean, and Africa, while North America dropped high-single-digit.
Lewis called North America Diageo’s “biggest challenge” and said the company has to make its offer there “more competitive.” Reuters reported in May that North American sales fell 9.4% in the quarter. Diageo has cut prices for tequila brands like Casamigos as part of its response. Diageo
| Diageo FY26 guidance | Company guidance |
|---|---|
| Organic net sales | Expected down 2% to 3% |
| Organic operating profit growth | Seen flat or slightly up |
| Accelerate savings in FY26 | Targeting about $300 million |
| Free cash flow | Guides to $3 billion |
| Capital expenditure | Aims for lower end of $1.2 billion to $1.3 billion range |
Friday brought new support for the other side. Barron’s said TD Cowen analysts are calling the alcohol slump more cyclical than permanent. U.S. alcohol volumes have fallen for four years straight and are expected to drop 4.5% in 2025, but alcohol’s share of nondurable goods spending has held around 5.5%. That matters for Diageo—analysts think profits could rise on just a small demand recovery and some cost cuts, without needing a full return to the pandemic’s spirits boom.
There’s also a balance-sheet angle, but Diageo doesn’t control it entirely. On June 24, Reuters said East African Breweries Plc (NASE:EABL), which Diageo owns, asked Kenya’s chief justice to move faster on hearings over lawsuits that could block Diageo’s planned $2.3 billion sale of a 65% stake to Asahi Group Holdings Ltd (TYO:2502). Diageo said it’s still confident in the deal and will act to protect its interests.
Richard Scrope, manager of VT Tyndall Global Select and a Diageo investor, told Reuters following the May trading update: “It’s early days for Dave, but he does seem to be grasping it.” Scrope said he was holding out for Lewis’ full plan in August. Reuters
The next scheduled stock event for Diageo is on Aug. 6. The company plans to update strategy when it reports full-year results for fiscal 2026. Investors want to hear more about U.S. spirits pricing, the ready-to-drink business, cost savings, proceeds from any asset sales and dividend cover.
