I’ve been watching the Diageo (LSE: DGE) share price closely since it crashed in November 2023, and it’s made pretty painful viewing. It’s plunged 50% in five years and continues to struggle, sliding 16.5% over the last 12 months. <\/p>\n
Lately, it’s shown the odd splash of life. Diageo shares are up 9% over the last six months, but that doesn’t make up for all the agony. <\/p>\n
Diageo was once one of the nation’s favourite FTSE 100 shares. It owns some of the world’s greatest drinks brands, from Guinness and Johnnie Walker to Smirnoff and Captain Morgan. Yet it’s struggled as consumers cut back on spirits, with the cost-of-living crisis squeezing wallets from Albuquerque to Zaragoza. <\/p>\n
Can this FTSE 100 stock sparkle again? <\/p>\n
After years of struggle, Diageo drafted in Tesco turnaround hero Sir Dave Lewis who joined in January. He began by slashing the dividend in half, arguing that Diageo needed greater financial flexibility. I’m sure it does, but it was another punch in the face for investors like me. The trailing yield is now just 2.1%. So can Dave Lewis turn things around? <\/p>\n
I’ve reviewed Diageo shares regularly so decided to take a different tack and ask ChatGPT. My question: can Diageo shares could soar 50% over the next year. Nobody can predict share prices, including AI, but I wanted to see if it could spot something I’d missed. <\/p>\n
ChatGPT said there are reasons for optimism. It said Lewis is already making his mark, launching a $1bn cost-saving programme and promising to reinvest in growth areas including Guinness and canned cocktails. <\/p>\n
Sales and profits are still falling <\/p>\n
That makes sense. Younger consumers are drinking less, particularly traditional spirits, but they’re not necessarily giving up alcohol altogether. “Ready-to-drink canned cocktails are growing rapidly in the US, offering Diageo a route into changing tastes,” ChatGPT said. <\/p>\n
Lewis has a lot to fix though. Full-year results (6 August) showed organic sales falling 2% and reported operating profit plunging 27% as North America struggles. Diageo still carries $20.5bn of net debt. <\/p>\n
Donald Trump has just imposed 50% tariffs on certain Canadian goods, including alcoholic drinks. That will hit Diageo’s Canadian whisky brands Crown Royal and Canadian Club. <\/p>\n
So can this drinks giant soar? <\/p>\n
ChatGPT’s conclusion? “A 50% gain is possible, but not the most likely outcome.” It’s a bit vague, inevitably, but hard to argue with. Diageo shares look better value today, with a price-to-earnings ratio of 14.3, but it’ll be a big job turning this crate around. <\/p>\n
So what do the human experts (who, frankly, AI gets most of its info from) say? The 21 analysts offering one-year share price forecasts produce a consensus target of 1,969p. If correct, that would see the shares climb 12.8% from today’s 1,746p.\u00a0That’s well short of my hoped-for 50% resurgence. <\/p>\n
I’m hanging on to my Diageo stake. I have faith in Dave Lewis. But I’ve sacrificed a lot of growth elsewhere while waiting for this flop to come good. The shares are worth considering, but I can’t really work up an appetite for them. I can see far more exciting stocks on the FTSE 100 today. <\/p>\n
Should you invest \u00a35,000 in Diageo Plc right now? <\/p>\n
When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. <\/p>\n
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Diageo Plc made the list? <\/p>\n
\u00a0See The Six Stocks <\/p>\n
Harvey Jones owns shares in Diageo. <\/p>\n
The post I asked ChatGPT if the Diageo share price will soar 50% in the next year and it said\u2026<\/a> appeared first on The Twelfth Magpie<\/a>. <\/p>\n More reading <\/p>\n The Twelfth Magpie 2026 <\/p>\n","protected":false},"excerpt":{"rendered":"I’ve been watching the Diageo (LSE: DGE) share price closely since it crashed in November 2023, and it’s…\n","protected":false},"author":2,"featured_media":149844,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[73294,580,37474,73292,73293,157,2707],"class_list":["post-149843","post","type-post","status-publish","format-standard","has-post-thumbnail","category-openai","tag-captain-morgan","tag-chatgpt","tag-dave-lewis","tag-diageo","tag-johnnie-walker","tag-openai","tag-share-price"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/149843","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/comments?post=149843"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/149843\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media\/149844"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media?parent=149843"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/categories?post=149843"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/tags?post=149843"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}