Jefferies has maintained a ‘buy’ rating on Diageo, forecasting a potential 35% rise in the company’s shares as it executes a turnaround of its struggling US business. The US market accounts for 40% of Diageo’s total sales, making it a critical focus for the spirits giant.
US Business Remains Key Focus
Diageo’s US operations are central to its recovery plans. According to Jefferies, the turnaround strategy aims to stabilize the business and regain market share despite a weak US spirits market, which is expected to contract by 3% this year. The company faces challenges from declining core brands and a weak presence in the ready-to-drink segment.
Shares Trade at a Discount
Jefferies noted that Diageo shares currently trade at a discount compared to peers. The brokerage expects the stock could re-rate as the recovery progresses. The 35% upside forecast hinges on successful execution of the US turnaround plan.
November 5 Update in Focus
Investors are eagerly awaiting Diageo’s first-quarter trading update, scheduled for November 5, which is expected to provide further insight into the turnaround’s progress. The company’s efforts come as market participants continue to assess its ability to stabilize performance and regain market share.
Meanwhile, Pluang’s market snapshot as of September 21, 2026, showed that among 43 priced US Consumer Staples stocks, 25 rose and 11 fell. Notable movers included Celsius Holdings at USD 28.24 (up 0.79%), Sysco Corporation at USD 79.63 (up 0.73%), and Krispy Kreme at USD 3.04 (up 0.66%).