DEO Stock Analysis — Latest Investor Quotes & Trade Calls

Bearish View on Diageo's Growth Prospects and Dividend Value

"Let's start by discussing Diago or I how I pronounce it badly. I don't drink so I don't know but the dividend yield is let's say okay now this would be the fair pricing of the company such a company especially because there is no real growth if I look at here it was flattish for the last few years and now given the competition the margins the let's say forcing growth they have also lost net income long-term debt that's something that is also weighing on these companies that are simply trying to let's say create some growth something but perhaps there is a structural issue there and that is that perhaps the management is drinking too much of that whiskey or whatever but brands are a little bit gone."

The speaker expresses a bearish view on Diageo, citing stagnant growth, deteriorating margins, loss of net income, and questionable management practices. The commentary suggests that even with an okay dividend yield, the lack of real growth and underlying structural issues make Diageo unattractive relative to better opportunities that could deliver higher yields.

Diageo's New CEO Brings Leadership Stability

"So, let's talk about the British drinks maker Diagio. Looks like uh investors are very pleased with the announcement of a new CEO. I suppose he's got experience filling the shelves with Johnny Walker bottles, doesn't he? Analysts have said that the appointment was a good move and noted that it brings the uncertainty over that leadership transition at the company to an end."

Investors have responded positively to the appointment of a new CEO at Diageo, citing his strong retail turnaround history at companies like Tesco. The change is seen as ending a period of leadership uncertainty, even as the company has faced a 30% decline over the past year. The market is watching to see if he can revitalize the company amid a slowing drinks market.

"DEO (overview): World's largest spirits producer, 200+ brands. Recent 10-year low due to Latin America sales decline, US tariff threats, Gen Z drinking less, high leverage (3.3x net debt/EBITDA). EPS down, valuation at 7-year low. Analysts split: some hold for brand power, others see headwinds. Management's capital allocation questioned."