Diageo Shares (DGE) Gain Momentum on Bullish Analyst Call

Diageo shares(LON:DGE) experienced a boost today as analyst outlooks turned increasingly positive. Recent ratings adjustments from key financial institutions have influenced market sentiment, contributing to upward price action for the global beverage alcohol leader.

The Diageo share price sits 1.22% higher at 1,654p, following an upgrade from RBC Capital. The analyst James Edwardes Jones, moved Diageo to “Outperform” from “Sector Perform,” maintaining a price target of 2,000p.

This upgrade reflects confidence in Diageo's brand portfolio and its ability to manage costs effectively. The firm highlighted Diageo's “enviable stable of brands across multiple price points,” suggesting a resilience to market fluctuations. RBC Capital believes that lower working capital outflows and reduced spending will limit the impact of any price reductions, further underpinning their positive outlook.

The RBC Capital upgrade follows a series of analyst rating adjustments over the past several months. Goldman Sachs, in August 2025, upgraded Diageo's stock from “Sell” to “Neutral,”. This decision was driven by the company's increased cost-saving measures implemented by new management, aimed at bolstering margins and stabilizing earnings. While Goldman Sachs acknowledged limited downside risk for fiscal year 2026, they emphasized the importance of top-line growth from fiscal year 2027 to sustain margin progression.

However, not all analyst actions have been uniformly positive. In December 2025, UBS downgraded Diageo from “Buy” to “Neutral,”, signaling a more cautious stance on the company's future performance.

Despite the mixed analyst ratings, Jefferies reiterated its “Buy” recommendation for Diageo in November 2025, reflecting continued confidence in the company's long-term growth prospects despite recent market challenges.

Today's price movement illustrates the power of analyst sentiment in shaping market perceptions, but it's the underlying fundamentals and strategic execution that will ultimately dictate Diageo's long-term trajectory.