Diageo gains fresh analyst support, shares in focus after TD Securities upgrade

By Anna Wagner, Analysts & Consensus desk. Reviewed prior to publication on 2026-06-26, 15:15.

Diageo (GB0002374006) draws renewed attention on the London Stock Exchange and NYSE after a rating change. TD Securities has upgraded the spirits group to Buy and lifted its price targets for both the London listing and the ADR, citing valuation dislocation and confidence in a turnaround under new chief executive Dave Lewis according to an Investing.com report.

What TD Securities changes

TD Securities now rates Diageo Buy instead of Hold and raises its target for the London-listed shares from 1,650 pence to 1,750 pence, and for the ADR from 88 to 93 US dollars as Investing.com details. The new target for London implies a valuation of 14 times forward 12-month earnings per share, a 5.1-turn discount to Diageo's five-year average forward P/E multiple of 19.1 times according to the same report.

The broker attributes the move partly to what it calls a valuation dislocation between Diageo’s current trading multiples and its historical averages, and partly to improved confidence that the new CEO Dave Lewis can stabilize growth and margins according to Investing.com. Diageo shares trade in the FTSE 100, giving the call high visibility among European blue-chip investors.

How the wider analyst consensus looks

The TD Securities move lands in an already constructive analyst backdrop. Berenberg reiterated its Buy rating on Diageo on 24 June and nudged its price target slightly lower from 2,230 pence to 2,223 pence, while still arguing that a return to top-line growth is plausible despite near-term challenges according to MarketScreener's summary of the Berenberg note. Deutsche Bank has also maintained a Buy stance on the stock in recent days, keeping Diageo among its preferred names in the global spirits sector as MarketScreener data show.

On data provider pages that aggregate analyst views, Diageo typically shows a majority of Buy or Outperform ratings, with an average target price implying upside from current levels according to finanzen.net's analyst overview. For investors comparing global beverage names such as Pernod Ricard and Diageo, the strengthened Buy cluster underlines that many houses see the current valuation in London and on the NYSE as attractive relative to long-term fundamentals based on MarketScreener's compilation of recent research.

The brands behind the stock

Diageo generates its revenue primarily with global spirits and beer brands. Flagship labels include Johnnie Walker Scotch whisky, Smirnoff vodka, Guinness stout and Tanqueray gin, which together reach consumers in more than 180 countries and underpin the group’s premium positioning in the global beverage market.

Where the stock trades today

The Diageo shares (GB0002374006) last traded on the London Stock Exchange at around 1,561 pence and on the Stuttgart venue at about 18.06 euros, with the London close implying a market capitalization in the region of 35 billion pounds as of 2026-06-26, 13:00.

This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell securities.