Analyst Views: Has Diageo’s results changed your outlook for this business?
TREVOR STIRLING | BERNSTEIN RESEARCH
Results were broadly in line with our expectations. We believe Diageo offers a balanced mixture of exposure to a resilient US spirits market and high long-term growth in emerging markets, albeit held back by structurally low growth in Western Europe. We rate Diageo “outperform”.
WYN ELLIS | NUMIS
Diageo, in our view, has promising medium-term growth attractions, but it faces continued short-term challenges in volatile emerging markets and from foreign exchange (FX)… With FX expected to be a further £160m drag in 2015, there may be some modest downside risk to consensus forecasts.
CARL SHORT | S&P CAPITAL IQ
Diageo’s full-year results were in line with Capital IQ’s consensus and reflected weakness in emerging markets (notably China) which we forecast will continue into 2015. We cut our full-year earnings per share (target) by eight per cent to £1.03, reflecting continued weakness in emerging markets.