Diageo (DGE LN) Hold: What’s beyond the quarter?

研报英文原文证据摘录

Diageo (DGE LN) Hold: What’s beyond the quarter?

nues to face a soft market overall, which has 2300

been extenuated by a tough competitive environment in the category and Diageo 1750

is losing share. In APAC, China’s easy comp from lapping the anti-extravagance 1200

measures should help somewhat, although more evidence is needed around the 07/25 01/26 07/26

category reigniting to growth. Target price: 1800 High: 2121 Low: 1362 Current: 1547

Source: LSEG IBES, HSBC estimates

Overall, we expect a weak quarter. While the underlying improving trends in some

markets are positive and improving, they are not enough in our view to compensate Carlos Laboy

for the category pressure in its key markets like the US and China. Global Beverage Head, LatAm Food Analyst

HSBC Securities (USA) Inc.

What to expect on the strategy update? Diageo’s vision of how demand creation, carlos.a.laboy@us.hsbc.com +1 212 525 6972

demand fulfilment and the reinforcing loops that bind these two together have been

Jeremy Fialko*, CFA

changing in the beverage industry and what it means for the long-term prospects of Senior Global Consumer Staples Analyst

HSBC Bank Middle East Limited, DIFC

the spirits industry. How the new CEO will make Diageo a better category leader and jeremy.fialko@hsbc.com

its pursuit of a client-centric, data-rich, digitally enabled brand and market developer +971 4 509 3366

for the purposes of accelerated revenue growth and superior profitability. From a Sorabh Daga*

Analyst, Global Beverages, LatAm Food

portfolio standpoint, what are the areas that would be most interesting for future HSBC Securities and Capital Markets (India) Private

M&A? Would Diageo be willing to stretch its balance sheet to add large assets that Limited

sorabh.k.daga@hsbc.co.in