DEO Price Prediction Next Week
Technical Analysis: Based on recent price action, DEO is showing bearish momentum with the stock trading below all major moving averages (SMA 5: 108.05, SMA 20: 113.76, SMA 200: 126.83). The RSI-14 at 42.88 indicates neutral momentum but trending downward.
Price Targets for Next Week:
- Resistance levels: $111.95 (Fibonacci R2), $114.10 (Fibonacci R3)
- Support levels: $106.31 (Fibonacci S1), $104.98 (Fibonacci S2)
- Current price: $110.52
News Sentiment Analysis: Recent news indicates significant headwinds:
- Declining financial results in H1 FY2025
- New U.S. tariffs concerns on imported alcohol
- Suspended medium-term guidance
- Operating profit fell 4.9% with margin contraction of 132 basis points
Barclays recently lowered price target to 2,660 GBp from 2,860 GBp, though maintaining an Overweight rating, reflecting near-term challenges.
Forecast for Next Week: Given the technical indicators and negative news sentiment:
- Bearish scenario (70% probability): Price likely to test Fibonacci S1 at $106.31
- Neutral scenario (20% probability): Consolidation between $108-$111
- Bullish scenario (10% probability): Limited upside potential capped at $111.95
Recommendation: SELL Rationale:
- Bearish technical setup with price below all major moving averages
- Negative news sentiment with tariff concerns
- Declining earnings estimates and stagnant sales growth
- Changing consumer trends with younger generations drinking less alcohol
- MACD showing bearish momentum (-3.53)
Target entry: Current market price ($110.52) Stop loss: $111.95 (Fibonacci R2) Price target: $106.31 (Fibonacci S1)
DEO Similar Chart Price Prediction
The price of DEO is predicted to go up 1.99%, based on the high correlation periods with FMC. The similarity of these two price pattern on the periods is 96.98%.
DEO
FMC
Up: 1.99%Similarity: 96.98%
DEO Revenue Forecast
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DEO VS S&P500
Across the U.S., Diageo's distributors have more than 2,800 dedicated salespeople focused solely on the company's products. This sizable support base has contributed to above-average operating margins in this highly profitable region.
Premium distilled spirits is an affordable luxury category that should benefit from long-term demand growth from aspirational and high-income consumers.
We believe the book value of equity is understated by at least GBP 3 billion, owing to the undervaluing of maturing inventory, which is recognized on the balance sheet at cost.
