Comparison of Ambev and Diageo: Ambev (ABEV) has a Zacks Rank of #2 (Buy) indicating a positive earnings outlook, while Diageo (DEO) has a Zacks Rank of #5 (Strong Sell), suggesting ABEV is the better undervalued stock option for investors.
Valuation Metrics: ABEV's forward P/E ratio is 14.46 and PEG ratio is 2.75, compared to DEO's forward P/E of 14.85 and PEG ratio of 4.38, highlighting ABEV's more favorable valuation metrics.
Value Grades: ABEV has a Value grade of B, while DEO has a Value grade of D, further supporting the argument that ABEV is the superior value investment at this time.
Technological Investment Opportunities: The article also discusses the potential of artificial intelligence and quantum computing in reshaping investment landscapes, suggesting that early investors in certain stocks could see significant gains.
Wall Street analysts forecast DEO stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for DEO is 88.46 USD with a low forecast of 24.85 USD and a high forecast of 131.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
Wall Street analysts forecast DEO stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for DEO is 88.46 USD with a low forecast of 24.85 USD and a high forecast of 131.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Buy
3 Hold
0 Sell
Hold
Current: 90.880
Low
24.85
Averages
88.46
High
131.00
Current: 90.880
Low
24.85
Averages
88.46
High
131.00
RBC Capital
James Edwardes Jones
Sector Perform
to
Outperform
upgrade
£2000
2026-01-06
Reason
RBC Capital
James Edwardes Jones
Price Target
£2000
AI Analysis
2026-01-06
upgrade
Sector Perform
to
Outperform
Reason
RBC Capital analyst James Edwardes Jones upgraded Diageo to Outperform from Sector Perform with an unchanged price target of 2,000 GBp. The firm says the company "enjoys an enviable stable of brands across multiple price points." It sees Diageo's lower working capital outflows and reduced spending limiting the impact of price reductions.
Morgan Stanley
Underweight
downgrade
2025-12-18
Reason
Morgan Stanley
Price Target
2025-12-18
downgrade
Underweight
Reason
Morgan Stanley lowered the firm's price target on Diageo to 1,530 GBp from 1,595 GBp and keeps an Underweight rating on the shares.
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Barclays
Laurence Whyatt
Overweight
downgrade
2025-12-12
Reason
Barclays
Laurence Whyatt
Price Target
2025-12-12
downgrade
Overweight
Reason
Barclays analyst Laurence Whyatt lowered the firm's price target on Diageo to 2,550 GBp from 2,650 GBp and keeps an Overweight rating on the shares.
Barclays
Overweight
maintain
2025-12-11
Reason
Barclays
Price Target
2025-12-11
maintain
Overweight
Reason
Barclays raised the firm's price target on Diageo to 2,650 GBp from 2,470 GBp and keeps an Overweight rating on the shares. The firm believes growth of ride-hailing and robotaxi services in the United States could boost alcohol sales. The impact has the potential to be significant and come sooner than the market anticipates, the analyst tells investors in a research note.
About DEO
Diageo plc is a United Kingdom-based international manufacturer and distributor of premium drinks. The Company offers beverage alcohol with a collection of brands across spirits and beer categories. Its segments include North America, Europe, Asia Pacific, Latin America and Caribbean, Africa, and Corporate and other. The SC&P segment manufactures products and includes production sites in the United Kingdom, Ireland, Italy, Guatemala and Mexico, as well as comprises the global procurement function. Its principal products include scotch whisky, whisk(e)y, vodka, tequila, gin, rum, liqueurs, beer, wine, and non-alcoholic spirits. Its collection of brands includes Johnnie Walker, J&B and Buchanan's whiskies, Smirnoff, Ciroc and Ketel One vodkas, Captain Morgan, Don Julio, Guinness, and Tanqueray, among others. It offers Ritual Zero Proof Non-Alcoholic Spirits (Ritual). It owns manufacturing production facilities across the globe, including distilleries, breweries, and packaging plants.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
