Diageo shares rise 2.9% as FT says co. plans to replace CEO

Diageo shares rise 2.9% as FT says co. plans to replace CEO

London, July 2, 2025 — Diageo plc (NYSE: DEO) shares have surged by 2.9% following reports that the company is planning to replace its CEO. The Financial Times (FT) cited unnamed sources indicating that the change is part of the company's strategic realignment, focusing on spirits and ready-to-drink beverages.

The news comes amidst a mixed bag of analyst ratings, with Diageo currently holding a "Hold" recommendation from eight rating firms, according to Marketbeat.com [1]. One analyst has rated the stock as a "Sell," three as "Hold," and four as "Buy." The average 1-year price objective among analysts is $129.00.

Institutional investors have shown significant interest in Diageo, with notable increases in stakes by Kovitz Investment Group Partners LLC, Bank of Montreal, FMR LLC, BNP Paribas Financial Markets, and Orbis Allan Gray Ltd. [1] These holdings now represent a significant portion of the company's stock, totaling 8.97%.

The company's recent performance has seen its stock price fluctuate between a 12-month low of $99.26 and a 12-month high of $142.73. The 50-day and 200-day moving averages are $107.52 and $110.86, respectively, indicating a steady upward trend.

Diageo, a leading producer of alcoholic beverages, has been undergoing internal changes, with East African Breweries Limited (EABL) being a key focus. Reports suggest that Alvin Mbugua could be the new CEO, leading EABL to a more spirits-focused operation [2].

Investors should closely monitor these developments, as they may have significant implications for Diageo's future performance and stock valuation.

References:
[1] https://www.marketbeat.com/instant-alerts/diageo-plc-nysedeo-receives-consensus-rating-of-hold-from-analysts-2025-07-13/
[2] https://www.ceo.co.ug/tag/diageo-executive-leadership-changes/