Diageo Shares May Rise 35% as US Turnaround Plan Gains Focus

Jefferies maintained a ‘buy’ rating on Diageo, forecasting a 35% rise in the company’s shares as it executes a turnaround of its struggling US business, which accounts for 40% of sales. The plan focuses on stabilizing and regaining market share despite a weak US spirits market expected to shrink 3% this year.

US Business Remains Key Focus

Diageo’s US operations remain central to the company’s recovery plans, accounting for 40% of its sales. According to Jefferies, the turnaround strategy aims to stabilize the business and regain market share amid challenging market conditions.

The US spirits market is expected to shrink 3% this year, adding pressure on Diageo as it works to address weakness across its portfolio. Declining core brands and a weak presence in ready-to-drink products are key challenges.

Shares Trade at Discount to Peers

Jefferies noted that Diageo’s shares trade at a discount to peers. The brokerage expects the stock could re-rate as the company’s recovery progresses.

Jefferies’ 35% potential rise forecast is tied to the execution of Diageo’s US business turnaround. Investors will be watching upcoming company updates for signs that the recovery strategy is gaining traction.

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November 5 Update in Focus

Diageo’s first-quarter trading update, scheduled for November 5, is expected to give investors further insight into progress on its turnaround plan.

The company’s recovery efforts come as investors continue to assess developments in the US business and its ability to stabilize performance and regain market share.

Meanwhile, Pluang’s market snapshot as of September 21, 2026, at 18:51 WIB 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%.