Diageo (DGE.L) Share Price Near 52-Week Lows: Latest News, Analyst Forecasts, and What to Watch Into 2026

Diageo plc shares are ending 2025 in an awkward place: the world’s biggest spirits group is reshaping its portfolio and preparing for a new CEO, but the stock is still trading close to its 52‑week lows after a bruising year for global spirits demand. On December 23, 2025, Diageo (LSE: DGE) traded around 1,605.5p, down 0.71% on the day and only marginally above its 1,587p 52‑week low, according to Investing.com data. ^[1]

That weakness isn’t happening in a vacuum. A holiday-thinned market has pushed liquidity lower, while spirits and beverage stocks have been a drag on European indices. At the same time, investors are weighing a fresh round of analyst target cuts, Diageo’s earlier guidance reset, and the near-term implications of an asset sale designed to reduce leverage. ^[2]

Diageo share price today: where DGE stands on 23 December 2025

After closing Monday, December 22 at £16.17 (1,617p)—a 3.66% drop—Diageo shares softened again on Tuesday. ^[3]

MarketWatch noted that the Dec. 22 close left the stock about 37% below its 52‑week high of £25.68 (hit on January 9, 2025). ^[4]

The short version: even after occasional relief rallies, the market is still pricing Diageo like a company in a “prove it” phase—until the next results cycle and the new CEO’s strategy provide more clarity.

Why Diageo stock dropped this week: sector pressure and target cuts

Part of the late-December wobble is simply the sector being out of favor. Reuters reported that beverage stocks weighed on European markets at the start of the holiday-shortened week, with Diageo down roughly 3.7% on December 22 in that broader risk-off move. ^[5]

But there was also a stock-specific nudge: Reuters said Bernstein trimmed its Diageo target price to 2,310p from 2,420p, and Diageo was the biggest drag on the FTSE 100 that day. ^[6]

It’s not that one target change “causes” a move like that by itself. In practice, target cuts tend to matter most when they confirm what the market is already nervous about—in Diageo’s case, the durability of the recovery in the U.S. spirits market and the pace of stabilization in China.

The biggest company headline: Diageo’s $2.3 billion East Africa deal

The most concrete piece of late-2025 corporate news is Diageo’s agreement to sell its stake in East African Breweries (EABL) to Asahi.

Reuters reported Diageo agreed to sell its 65% stake in EABL to Asahi for about $2.3 billion, valuing EABL at roughly $4.8 billion, and that the deal is expected to complete in the second half of 2026 (subject to approvals). ^[7]

Diageo’s own press release adds the balance-sheet math investors care about: estimated net proceeds of $2.3bn (after tax and transaction costs), an implied valuation multiple of 17x adjusted EBITDA, and an expected ~0.25x reduction in leverage. It also says Diageo plans long-term licensing agreements to keep Guinness and certain spirits/RTD brands produced and distributed in the region even after the disposal. ^[8]

This is a classic “asset-light, keep the brand economics” move—sell capital-heavy exposure, keep distribution and licensing flows where possible, and use proceeds to de-lever. The market’s question is whether this is enough (and fast enough) to change the narrative.

Leadership reset: Dave Lewis takes over 1 January 2026

The other big variable is leadership.

Diageo confirmed Sir Dave Lewis will become CEO effective 1 January 2026, while interim CEO Nik Jhangiani will serve through the end of December and then return to the CFO role. ^[9]

Reuters has framed Lewis’s arrival as a potential inflection point, emphasizing the expectation that he will prioritize cost reductions and asset disposals to strengthen the balance sheet, with investors looking to Diageo’s February results for early strategy signals. ^[10]

For stockholders, this matters because CEO transitions often unlock “strategic re-rating” moments—either the new leadership convinces the market the recovery path is credible, or the stock remains trapped in a low-confidence valuation.

The overhang: Diageo’s guidance reset and weak demand in the U.S. and China

Why has the stock been so sensitive to any hint of weaker demand? Because Diageo already delivered a sobering message earlier this quarter.

On November 6, Reuters reported Diageo cut its forecasts after a first-quarter trading update. Key points included:

Diageo expected fiscal 2026 sales to be flat or slightly lower.
It guided for low- to mid-single-digit operating profit growth.
It flagged a double-digit sales decline in China.
And it reported U.S. sales fell 4.1%, with a steep drop in tequilas (including Don Julio, historically a key growth engine). ^[11]

That combination—U.S. softness + China weakness + tequila normalization—hits the three places investors had been leaning on for premium spirits growth.

Labor news: Belfast strike action back on the radar

There’s also been a smaller, operational headline: labor disruption risk in Northern Ireland.

Reuters reported on December 9 that workers at Diageo’s Belfast packaging site voted to reject an improved offer and resume strike action, though Diageo said it expected no disruption to Guinness or Guinness 0.0 supplies over Christmas. ^[12]

This isn’t the kind of story that usually changes long-term valuation models—but it can matter at the margin in peak seasonal periods when investors are hypersensitive to brand execution and supply continuity.

Dividends and the balance sheet: what investors are really debating

Diageo is still paying meaningful dividends—an important part of why many investors own the stock. In late November, Diageo announced the sterling equivalent of its final dividend at 47.91p per ordinary share, with a payment date of 4 December 2025. ^[13]

But the market is also watching leverage. Diageo’s own results materials show net debt of $21.9 billion at 30 June 2025 and a 3.4x net debt to adjusted EBITDA leverage ratio at that time, alongside an expanded cost-savings target (its “Accelerate” program) of roughly $625 million. ^[14]

Reuters’ November analysis captured the strategic tension neatly: to reduce debt and regain momentum, Diageo may need a mix of cost cuts and disposals, but investors also care about protecting brand investment and the dividend—especially in a tougher demand environment. ^[15]

Analyst forecasts: price targets imply upside, but conviction is mixed

Here’s where the story gets interesting: despite the weak share price, the analyst consensus still points higher.

Investing.com shows a consensus price target around 2,077.56p versus the current ~1,605p level (roughly ~29% upside), with a broad target range and a rating distribution skewed toward “buy,” but with notable holds and sells in the mix. ^[16]
MarketBeat lists an average target of about 2,198.75p (based on a smaller set of analysts), implying a larger potential upside from recent prices. ^[17]

At the same time, recent broker actions underline the uncertainty:

Reuters said Bernstein cut its target again to 2,310p from 2,420p. ^[18]
A Reuters/Refinitiv item published via TradingView noted UBS downgraded Diageo to Neutral and cut its target to 1,850p from 2,250p, citing U.S. spirits downside risks (with the U.S. spirits market described as roughly ~30% of FY25 sales). ^[19]

So the market’s message is not “analysts hate Diageo.” It’s “analysts see upside if execution and demand stabilize”—and they’re arguing about how long that will take.

The next major catalyst: Diageo interim results on 25 February 2026

If you’re wondering what could realistically change sentiment soon, the calendar matters.

Diageo’s investor calendar lists interim results for the six months ending 31 December 2025 on 25 February 2026. ^[20]

Given the CEO change on January 1, those results are likely to be treated as:

the first big “state of the union” moment heading into Lewis’s tenure, and
a key checkpoint for whether U.S. demand is stabilizing and whether China remains a drag at the same intensity.

What to watch going into 2026: the three levers that can re-rate the stock

As of 23.12.2025, Diageo’s setup is basically a three-lever machine:

Demand normalization (especially in the U.S.)
Investors will be looking for evidence that the category slowdown is easing and that Diageo can defend share without sacrificing premium positioning. Diageo itself highlighted U.S. softness and tequila weakness as a major factor behind its guidance reset. ^[21]
China trajectory
A double-digit decline is not a “normal quarter” event; it’s a macro/consumer confidence signal. Any stabilization here could matter disproportionately for sentiment. ^[22]
Balance-sheet credibility
The EABL sale is a meaningful move on de-leveraging, and Diageo has been explicit that the transaction supports its commitment to reduce leverage. ^[23]

If those three improve together, Diageo stock can look like a classic “quality compounder at a temporarily depressed valuation.” If they don’t, it risks staying stuck in a low-confidence box where every rally gets sold until numbers—not narratives—turn.