Report
Philip Gorham, CFA, FRM
EUR 147.86 For Business Accounts Only

Patience is still needed as Diageo attempts to turn around its premium scotch and U.S. businesses.

Diageo's preliminary full-year results were very close to our forecasts, so we are reiterating our GBX 2,250 fair value estimate for the London-traded ordinary shares. The results showed continued signs of improving performance, a turnaround that we expect to be driven by the company's wide economic moat, which is based on the breadth of its portfolio and entrenched relationships with many of its largest customers. Diageo is a very high-quality business, in our opinion, and the stock is one of t...
Underlying
Diageo plc

Diageo is a premium drinks business based in the United Kingdom. Co. is engaged in producing and distributing spirits, beer and wine. Co.'s operations include producing, distilling, brewing, bottling, packaging, distributing, developing and marketing of a range of brands. The brands that it produces and distributes include Smirnoff vodka, Johnnie Walker scotch whisky, Baileys Original Irish Cream liqueur, Captain Morgan rum, J&B scotch whisky, Tanqueray gin and Guinness stout. In addition, Co. also has the distribution rights for the Jose Cuervo tequila brands in North America and other countries.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Philip Gorham, CFA, FRM

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