Morgan Stanley Raises Diageo (DEO) Price Target to $83
Key Points
- Morgan Stanley increased its price target for Diageo from $76 to $83, maintaining an Underweight rating.
- As of October 26, 2026, Diageo shares traded at $94.52, which is about equal to the event close of $94.48.
- The average target price among analysts for Diageo is $106.29, indicating a potential upside from the current trading levels.
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On October 26, 2026, Morgan Stanley raised its price target on Diageo plc (DEO) to $83, up from a previous target of $76, while maintaining its Underweight rating. This change signals Morgan Stanley's cautious outlook on the stock despite the increase in the target price.
In its recent analysis, Morgan Stanley noted the new price target while keeping the Underweight rating. This suggests that while the firm sees some potential for price appreciation, it remains cautious about the overall performance of Diageo in the market.
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Other Institutional Activity in Diageo
Several other institutional investors have also made adjustments to their stakes in Diageo. Orbis Allan Gray Ltd holds 4,777,636 shares, having increased its position by 1,077,484 shares, valued at about $451.4 million. Equity Investment Corp owns 1,667,509 shares, adding 199,244 shares valued at approximately $157.5 million. Franklin Resources, Inc. has 1,555,320 shares after increasing its holdings by 206,270 shares worth about $146.9 million. Markel Group Inc has maintained its position with 1,372,208 shares, while Brookfield Corp increased its stake by 901,556 shares, totaling 1,200,738 shares valued at around $113.4 million.
Diageo plc Stock Down 2.2%
As of October 26, 2026, Diageo shares traded at $94.52, which is about equal to its closing price of $94.48 on that day. The stock is currently above its 50-day moving average by about 5.4% and above its 200-day moving average by 10.3%. However, it is about 8.0% below its 52-week high of $102.74. The current price is also below the average analyst target of $106.29, indicating that the stock could have room to grow.
$DEO price target
Diageo plc daily closes and this analyst's $83 target. Not advice.
Recent Earnings
Diageo reported trailing twelve-month revenue of approximately $19.6 billion, with a net margin of 8.8%. The company's return on equity stands at 15.0%. Diageo is set to announce its next earnings on February 4, 2027.
Dividend
Diageo pays an annual dividend rate of $2.00 per share, which translates to a yield of 2.08%. However, the company’s dividend payout ratio is notably high at 106.5%, which may raise questions about sustainability.
Analysts Set New Price Targets
On October 26, 2026, Morgan Stanley maintained its Underweight rating on Diageo while raising its price target to $83 from $76. The consensus among analysts suggests a mean target price of $106.29, indicating potential for growth based on current trading levels.
About Diageo
Diageo plc is a leading global producer of alcoholic beverages, including beer, spirits, and wines. The company operates across various regions, including North America, Europe, and Asia Pacific. Diageo is well-known for its diverse portfolio of brands, including Johnnie Walker, Smirnoff, and Guinness, among others.
Bottom Line
Investors should keep an eye on Diageo’s upcoming earnings report on February 4, 2027, as well as any further analyst updates following Morgan Stanley's recent target adjustment. The stock's performance relative to its new price target and the broader market trends will be important to watch in the coming weeks.
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Source: Morgan Stanley's rating change on $DEO (Oct 26, 2026). Written by software, not financial advice. How we make alerts