London, March 4, 2026, 08:29 GMT — Regular session
- Diageo shares slipped at the open in London, hovering just above last week’s reset and still close to their 52-week low.
- HSBC downgrades the stock to “hold”, while TD Cowen lowers its target with persistent U.S. weakness weighing.
- Looking ahead, the April ex-dividend date is on deck, with Diageo’s trading update following on May 6.
Diageo plc (DGE.L) slipped 0.1% to 1,563.5 pence just after the open in London on Wednesday, with the latest round of broker caution pressuring the spirits giant. By 08:29 GMT, volumes lagged well beneath the usual pace. Over the last year, shares have dropped roughly 27% and continue to trade close to their 52-week low.
HSBC cut Diageo to “hold” from “buy” on Monday, slapping a 1,800 pence price target on the shares. Analysts cited uncertainty around the timing of a bottom in the company’s U.S. volumes. They also highlighted a slowdown in the U.S. spirits market, weaker consumer trends in China, and ongoing pressures in Chinese white spirits. TipRanks
Robert Moskow at TD Cowen is sticking to his “hold” call, but trimmed his price target down to 1,650 pence. He points out the near-term picture feels more balanced than attractive right now. The dividend reset and bigger spending cloud earnings visibility, and with no major strategy update expected before the third quarter, there’s a lack of clarity. TipRanks
Last week, Diageo trimmed its interim dividend to 20 cents and moved to a stricter payout policy after cutting its fiscal 2026 outlook. The maker of Guinness and Johnnie Walker reported a 2.8% drop in first-half organic net sales—a figure excluding currency moves and deals—and now projects organic sales will slip 2%-3% this year, citing sluggish U.S. spirits and continued pressure on Chinese white spirits. Free cash flow guidance stays at $3 billion, while net debt was $21.7 billion as of Dec. 31. Diageo flagged plans to sell its East African Breweries stake for $2.3 billion to help reduce leverage.
The February 25 reset sent Diageo tumbling 9.7%, triggering declines across the sector as Pernod Ricard, Remy Cointreau, and Campari all got hit. “These are awful results, and the repair job is massive,” said Dan Coatsworth, head of markets at AJ Bell. Fintan Ryan at Goodbody didn’t mince words either, calling it “just the trailer.” The real test for the new boss comes when he lays out a full strategy — CEO Dave Lewis told investors the board will see the plan in the second quarter, with details going public in the third. Reuters
Diageo on Monday reported its issued share capital as of Feb. 28 at 2,432,425,480 ordinary shares. Of those, 205,973,302 shares are currently held in treasury. The company put its total voting rights at 2,226,452,178.
Traders are eyeing Diageo’s ability to steady U.S. volumes without giving up significant margin. They’re also waiting to see if Lewis’s strategy revamp will land with enough specifics to justify another reset in expectations.
The path ahead looks choppy. Price cuts to protect market share, ongoing weakness out of China, and fresh cost headwinds could all push earnings estimates lower — broker targets likely to shift in step.
Up next for Diageo: the interim dividend. UK shares lose the payout rights after April 16, the ex-dividend date, with payment coming June 4. Eyes are also on the fiscal 2026 Q3 trading update set for May 6, and then preliminary results land August 6.
