Market's view on Diageo
Published on April 2024
- Some stock watchers express concern over the FTSE 100’s inability to appropriately value its global stocks, highlighting a scenario where major companies like Diageo could potentially double their market valuations by relocating to New York.
- There are discussions about Diageo’s current performance, noting their failure to capture key markets and the younger demographic, which might necessitate a strategic overhaul or instigate a takeover.
- The possibility of Diageo experiencing a significant increase in valuation if listed in New York instead of London is considered, emphasizing the disparity in market capitalisation based on geographic listing.
- Stock watchers discuss Diageo’s remuneration policies, particularly the doubling of CEO David Schwimmer’s salary to £13 million, which is contingent on performance results.
- Concerns are raised about the potential sales issues for Diageo’s Guinness Zero product, as it is reportedly unavailable in many bars and restaurants, impacting visibility and sales.
- The financial performance of LVMH is mentioned as a negative indicator for Diageo, given their partial ownership in Moet Hennessy, which is performing poorly, particularly in markets like the US and China.