Fintel reports that on October 16, 2025, Deutsche Bank maintained its Hold recommendation for Diageo (OTCPK:DGEAF). This analyst coverage provides valuable insights for investors considering positions in the global spirits company.
Key Takeaways
- Deutsche Bank reiterates a Hold rating on Diageo (OTCPK:DGEAF).
- The average 12-month price target suggests a potential downside of 6.64%.
- Fund sentiment data shows a slight decrease in the number of institutions holding positions.
- Several major funds have adjusted their portfolio allocations in Diageo over the last quarter.
- Projected annual revenue shows a decrease, while non-GAAP EPS stands at $1.95.
Analyst Price Forecast Suggests Potential Downside
As of September 30, 2025, the average one-year price target set by analysts for Diageo stands at $31.70 per share. Forecasts from various analysts range from a low of $23.29 to a high of $39.17. This average price target represents a potential decrease of 6.64% from the company’s latest reported closing price of $33.95 per share. Investors should note this forecast when evaluating Diageo’s current valuation.
💡 It’s crucial to consider a range of price targets rather than relying solely on the average to understand the full spectrum of analyst expectations.
The projected annual revenue for Diageo is $18,702 million, indicating an anticipated decrease of 7.62%. Concurrently, the projected annual non-GAAP Earnings Per Share (EPS) is $1.95. These financial projections offer a glimpse into the expected performance of the company in the near term.
📊 Understanding revenue and EPS forecasts is essential for assessing a company’s growth trajectory and profitability.
Fund Sentiment and Institutional Ownership
Currently, 466 funds or institutions report holding positions in Diageo. This represents a slight decrease of 14 owners, or 2.92%, compared to the previous quarter. While the number of holders has marginally declined, the average portfolio weight dedicated to DGEAF by all funds has increased by 14.02% to 0.56%. Furthermore, total shares owned by institutions saw an increase of 3.79% over the last three months, reaching 474,803,000 shares.
✅ A rise in average portfolio weight, even with fewer holders, can indicate increased conviction among remaining institutional investors.
Key Shareholder Activities
Institutional investors are actively managing their stakes in Diageo. ARTKX (Artisan International Value Fund Investor Shares) significantly increased its holdings, now owning 39,339,000 shares, representing 1.77% of the company. This marks a substantial increase of 47.29% in shares held, alongside a 71.26% rise in portfolio allocation to DGEAF over the last quarter.
📍 Tracking increases in portfolio allocation by major funds can signal positive sentiment.
Conversely, VDIGX (Vanguard Dividend Growth Fund Investor Shares) has decreased its holdings, reporting 36,135,000 shares, which is 1.63% ownership. This reflects a decrease of 14.21% in shares owned, with a notable 24.48% reduction in portfolio allocation to DGEAF in the past quarter.
📉 A decrease in holdings and allocation suggests a rebalancing or reduced confidence from specific funds.
VGTSX (Vanguard Total International Stock Index Fund Investor Shares) has slightly increased its stake, holding 32,236,000 shares (1.45% ownership). This saw a 1.96% rise in shares owned, although the fund decreased its overall portfolio allocation in DGEAF by 18.15% last quarter.
📌 It’s important to distinguish between changes in share count and percentage of total portfolio allocation.
VTMGX (Vanguard Developed Markets Index Fund Admiral Shares) also saw an increase in its position, holding 20,055,000 shares (0.90% ownership), up 2.48% in share count. However, similar to VGTSX, its portfolio allocation to DGEAF decreased by 12.63% over the last quarter.
⚡ Analyzing the buy and sell activities of major index and international funds provides context for market trends.
Lastly, DODFX (Dodge & Cox International Stock Fund) increased its holdings by 11.07% to 19,468,000 shares (0.88% ownership). Despite this increase in shares, the fund’s portfolio allocation to DGEAF saw a modest decrease of 2.05% in the last quarter.
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This insights originally appeared on Fintel.
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