Diageo Shares Steady as TD Cowen Lifts Price Target

TD Cowen raised its price target on Diageo (LON: DGE, NYSE: DEO) to $110 from $93 on Monday, reiterating its Buy rating.

Analysts cited “increased confidence that fundamentals can improve through self-help initiatives,” even as U.S. spirits demand stays subdued, pointing to what they called a “credible roadmap for improved growth, competitiveness, and execution.” On the London-listed shares, the brokerage’s target reportedly rose to roughly £20.40 from £17.50.

Diageo’s London stock closed Friday at 1,792p, up 0.1%, extending a sharp rally from lows near 1,472.5p in early June — a gain of more than 21% over ten weeks, with volume spiking to over 15 million shares on August 7. The New York-listed ADR last traded near $96.92, about 12-13% below TD Cowen’s new target.

The upgrade follows Diageo’s FY26 results, which showed reported net sales down 3.0% to $19.6 billion, hurt by North America and Asia Pacific weakness. Reported operating profit fell 27.2% on $1.5 billion of impairments, mostly tied to Türkiye and select brands, while net profit dropped 22.9%.

Still, EPS before exceptionals rose 0.7%, and free cash flow climbed to $3.2 billion. Management unveiled a two-year restructuring plan targeting roughly $850 million in savings, alongside a rebased dividend of 50 cents per share, down from 103.48 cents.

TD Cowen’s target hike suggests growing analyst confidence that Diageo’s cost-cutting and margin gains can offset soft top-line trends going forward.