Diageo (NYSE:DEO) Upgraded by BNP Paribas Exane to Neutral Rating

BNP Paribas Exane upgraded shares of Diageo (NYSE:DEO) from an underperform rating to a neutral rating in a research report released on Wednesday morning, Marketbeat reports.

Several other equities analysts have also weighed in on DEO. Deutsche Bank Aktiengesellschaft restated a “hold” rating on shares of Diageo in a report on Friday, November 28th. Argus raised shares of Diageo to a “hold” rating in a report on Tuesday, March 10th. UBS Group reiterated a “neutral” rating on shares of Diageo in a research report on Wednesday, December 3rd. Royal Bank Of Canada raised Diageo from a “sector perform” rating to an “outperform” rating in a research note on Tuesday, January 6th. Finally, Sanford C. Bernstein set a $124.00 price target on Diageo and gave the stock an “outperform” rating in a research report on Monday, December 29th. Five investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $116.50.

Diageo Price Performance

Diageo stock opened at $74.01 on Wednesday. The company has a debt-to-equity ratio of 1.53, a quick ratio of 0.71 and a current ratio of 1.60. Diageo has a 1 year low of $72.45 and a 1 year high of $116.69. The company’s 50-day moving average is $88.31 and its two-hundred day moving average is $91.28.

Diageo Dividend Announcement

The company also recently declared a dividend, which will be paid on Thursday, June 4th. Stockholders of record on Friday, April 17th will be given a dividend of $0.80 per share. This represents a dividend yield of 207.0%. The ex-dividend date of this dividend is Friday, April 17th.

Hedge Funds Weigh In On Diageo

Several institutional investors and hedge funds have recently made changes to their positions in DEO. Bank of Montreal Can raised its stake in Diageo by 428.7% during the 4th quarter. Bank of Montreal Can now owns 2,173,047 shares of the company’s stock worth $187,469,000 after buying an additional 1,762,027 shares during the period. The Manufacturers Life Insurance Company increased its holdings in shares of Diageo by 72,871.7% in the second quarter. The Manufacturers Life Insurance Company now owns 1,568,162 shares of the company’s stock worth $158,133,000 after acquiring an additional 1,566,013 shares in the last quarter. Equity Investment Corp bought a new stake in shares of Diageo in the third quarter worth about $92,970,000. Orbis Allan Gray Ltd raised its position in shares of Diageo by 236.6% during the second quarter. Orbis Allan Gray Ltd now owns 1,157,991 shares of the company’s stock worth $116,772,000 after purchasing an additional 813,973 shares during the period. Finally, Arrowstreet Capital Limited Partnership raised its position in shares of Diageo by 353.7% during the second quarter. Arrowstreet Capital Limited Partnership now owns 717,740 shares of the company’s stock worth $72,377,000 after purchasing an additional 559,547 shares during the period. Institutional investors and hedge funds own 8.97% of the company’s stock.

Key Stories Impacting Diageo

Here are the key news stories impacting Diageo this week:

• Positive Sentiment: Diageo agreed to sell its Royal Challengers Bengaluru franchise in a deal reported at roughly $1.8 billion, which could generate over $1 billion of value for the company and provides near-term liquidity to reduce debt burdens. Diageo Sells Cricket Team to Blackstone-Backed Consortium for $1.8 Billion Diageo Could Gain Over $1 Billion From $1.8 Billion IPL Team Sale
• Positive Sentiment: UBS called the sale “well-timed” and noted the valuation is rich (UBS calculated a ~54x EBITDA multiple), framing the deal as a good way for the new CEO to shore up the balance sheet after the team’s recent success. Diageo’s cricket sale looks well-timed for new CEO, says UBS
• Positive Sentiment: Some sell-side and research houses reacted positively with upgrades: BNP Paribas Exane raised Diageo from underperform to neutral, and Zacks moved the stock from strong sell to hold — both reduce near-term analyst pressure. Zacks.com
• Neutral Sentiment: Coverage roundup and inclusion on lists: Diageo appears on at least one list of “undervalued defensive stocks,” which may attract some income-focused buyers but is not a material catalyst by itself. 12 Undervalued Defensive Stocks for 2026
• Negative Sentiment: Citi/Street sentiment is mixed — one outlet reports a downgrade from buy to hold, signaling some analysts remain cautious on execution and long-term growth despite the one-off sale. Diageo plc (DEO) gets downgraded to hold from buy – here’s why
• Negative Sentiment: Short interest has risen materially in March (roughly a 24% increase vs. late February), signaling heightened bearish positioning that could pressure the stock if negative headlines continue or if the market re-prices recovery prospects. (Source: market short-interest report)

About Diageo

Diageo plc is a global producer, marketer and distributor of alcoholic beverages, headquartered in London, England. The company was created through the 1997 merger of Guinness plc and Grand Metropolitan plc and is publicly traded on multiple exchanges, including the New York Stock Exchange (NYSE: DEO) and the London Stock Exchange. Diageo operates a worldwide business, selling products in a broad range of markets across the Americas, Europe, Africa, Asia and Latin America.

Diageo’s core activities cover the production, marketing and sale of a diverse portfolio of spirits, beer and liqueurs.