Diageo Shares Gain as Barclays Remains Bullish on Ride-Hailing Boost

Diageo shares (LON:DGE) are trading 1.75% higher today, bouncing off recent lows following Barclay’s increased price target on the stock.

Barclays has lifted its price target for Diageo to 2,650p from a previous 2,470p, maintaining an “Overweight” rating on the shares, and a potentially very healthy upside from the current level (1,630p). This decision is underpinned by the firm’s belief that the growth of ride-hailing and robotaxi services in the U.S. could significantly boost alcohol sales.

The analyst note suggests that this impact could materialize sooner and be more substantial than currently anticipated by the market.

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There have been a series of recent analyst notes on DGE that have shaped sentiment. Earlier this year, Barclays had adjusted Diageo’s price target downwards from GBp28.60 to GBp26.60, citing a cautious year-end outlook despite strong first-half results. This revision factored in potential tariff risks affecting key brands like Crown Royal, Don Julio, and Casamigos, with projected organic sales growth of 1.8% and a 0.7% decline in EBIT for the year.

Meanwhile, BofA Securities has maintained a bullish stance, reaffirming a “Buy” rating with a price target of GBp28.00. Their estimates project a 1.3% growth in organic sales, albeit with a slight 0.6% dip in organic EBIT and a margin contraction of 60 basis points.

In contrast, JPMorgan has adopted a more neutral position, reiterating a “Neutral” rating with a price target of GBp25.00, highlighting potential downside risks to fiscal year 2026 expectations due to factors such as a weakening U.S. market, softening in Western Europe, and decelerating price/mix across regions.

Deutsche Bank, in August, lowered its price target for Diageo from GBp20.60 to GBp20.20, maintaining a “Hold” rating, citing potential tariff headwinds as a concern, even amidst confidence in the company’s revitalization efforts. More recently, Berenberg Bank slightly reduced its price target from GBp2,372 to GBp2,370, while reaffirming a “Buy” rating, suggesting a potential upside of approximately 37.27% from the current share price.

Investor confidence received a boost with the appointment of Sir Dave Lewis, former CEO of Tesco, as Diageo’s new Chief Executive Officer, effective January 1, 2026, leading to a 5.2% surge in the stock price upon the announcement.

Furthermore, speculation regarding a potential sale or spin-off of the Guinness brand, valued at over $10 billion, also sparked market interest, driving a 4% increase in Diageo’s share price.