Smartkarma AI, Smartkarma

αSK

Smartkarma AI

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Bottom-Up

<ul>
 <li>
Global Spirits Leader with Unmatched Portfolio: Diageo stands as a global leader in the alcoholic beverage industry, boasting an unparalleled portfolio of iconic brands such as Johnnie Walker, Smirnoff, and Guinness. Its wide economic moat is built on strong brand recognition, extensive global distribution, and economies of scale that are difficult for competitors to replicate.</li>
 <li>
Navigating Headwinds and Margin Pressure: The company is currently navigating a challenging macroeconomic environment characterized by inflationary pressures, rising debt, and shifting consumer preferences towards moderation or lower-alcohol options. Recent financial performance reflects these challenges, with a notable decline in net income and profit margins, partly due to weakening consumer sentiment in key markets and increased costs.</li>
 <li>
Long-Term Growth Hinges on Premiumization and Emerging Markets: Future growth is strategically focused on the premiumization trend, where consumers drink better-quality spirits, and expansion in emerging markets. While near-term growth may be subdued, Diageo's ability to innovate and adapt its portfolio to evolving tastes, coupled with its strong market position, provides a solid foundation for long-term value creation.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  
Global Spirits Leader with Unmatched Portfolio: Diageo stands as a global leader in the alcoholic beverage industry, boasting an unparalleled portfolio of iconic brands such as Johnnie Walker, Smirnoff, and Guinness. Its wide economic moat is built on strong brand recognition, extensive global distribution, and economies of scale that are difficult for competitors to replicate.
  
Navigating Headwinds and Margin Pressure: The company is currently navigating a challenging macroeconomic environment characterized by inflationary pressures, rising debt, and shifting consumer preferences towards moderation or lower-alcohol options. Recent financial performance reflects these challenges, with a notable decline in net income and profit margins, partly due to weakening consumer sentiment in key markets and increased costs.
  
Long-Term Growth Hinges on Premiumization and Emerging Markets: Future growth is strategically focused on the premiumization trend, where consumers drink better-quality spirits, and expansion in emerging markets. While near-term growth may be subdued, Diageo's ability to innovate and adapt its portfolio to evolving tastes, coupled with its strong market position, provides a solid foundation for long-term value creation.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

US-EU Index Rebalances / Quantitative Researcher, ORTEX

Dimitris Ioannidis

US-EU Index Rebalances / Quantitative Researcher

Global Financial Data and Analytics Platform

ORTEX

ORTEX is a global financial data and analytics platform providing real-time securities lending and short interest data, index rebalance data, holdings and insider transactions, trading signals, corporate actions and news,  stock machine learning and factor scores and other analytics. The majority of the data are downloadable and accessible through APIs.

Index Rebalance

Banco Bilbao Vizcaya Argentari / Index Rebalance

<ul>
<li>The main forecasted additions are <a href="https://www.smartkarma.com/entities/banco-bilbao-vizcaya-argentari" target="_blank" data-smartkarma-citation="entities:21251:1" rel="noopener">Banco Bilbao Vizcaya Argentari (BBVA SM)</a> and <a href="https://www.smartkarma.com/entities/rheinmetall-ag" target="_blank" data-smartkarma-citation="entities:21700:1" rel="noopener">Rheinmetall AG (RHM GR)</a> as they are both surpassing the entry rank.</li>
<li>The main forecasted deletions are <a href="https://www.smartkarma.com/entities/mercedes-benz-group-ag" target="_blank" data-smartkarma-citation="entities:21602:1" rel="noopener">Mercedes-Benz Group (MBG GR)</a> and <a href="https://www.smartkarma.com/entities/basf-se" target="_blank" data-smartkarma-citation="entities:21585:1" rel="noopener">BASF (BAS GR)</a> as they are both below the exit rank.</li>
<li>The highest-ranked among <a href="https://www.smartkarma.com/entities/deutsche-bank-ag-40d2d02f-a52f-4d36-a86f-79c59c4f0f17" target="_blank" data-smartkarma-citation="entities:526:1" rel="noopener">Deutsche Bank (DBK GR)</a>, <a href="https://www.smartkarma.com/entities/bae-systems-plc" target="_blank" data-smartkarma-citation="entities:21825:1" rel="noopener">BAE Systems (BA/ LN)</a> and <a href="https://www.smartkarma.com/entities/barclays-plc" target="_blank" data-smartkarma-citation="entities:1121:1" rel="noopener">Barclays (BARC LN)</a> may replace <a href="https://www.smartkarma.com/entities/diageo-plc" target="_blank" data-smartkarma-citation="entities:977:1" rel="noopener">Diageo Plc (DGE LN)</a> if its price falls further.</li>
</ul>


The main forecasted additions are Banco Bilbao Vizcaya Argentari (BBVA SM) and Rheinmetall AG (RHM GR) as they are both surpassing the entry rank.
The main forecasted deletions are Mercedes-Benz Group (MBG GR) and BASF (BAS GR) as they are both below the exit rank.
The highest-ranked among Deutsche Bank (DBK GR), BAE Systems (BA/ LN) and Barclays (BARC LN) may replace Diageo Plc (DGE LN) if its price falls further.


STOXX Europe50 September 2025 Forecast: BBVA & RHM Set to Join, BAS & MBG to Exit

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Cross Asset Strategy

<ul>
<li>AI boom reflected in record fund ownership in ASML Holding NV (ASML NA), NVIDIA Corp and Taiwan Semiconductor (TSMC) (2330 TT).</li>
<li>The 'Magnificent 7' group of stocks have hit a record underweight of -6.83% below the MSCI ACWI index.  They collectively account for 11.2% of the average Global fund.</li>
<li>Recovery Stocks: The old guard of At&amp;T Inc (T US), International Business Machines (IBM US) and General Electric (GE US) appear to be gathering some support from active Global funds.</li>
</ul>


AI boom reflected in record fund ownership in ASML Holding NV (ASML NA), NVIDIA Corp and Taiwan Semiconductor (TSMC) (2330 TT).
The 'Magnificent 7' group of stocks have hit a record underweight of -6.83% below the MSCI ACWI index.  They collectively account for 11.2% of the average Global fund.
Recovery Stocks: The old guard of At&amp;T Inc (T US), International Business Machines (IBM US) and General Electric (GE US) appear to be gathering some support from active Global funds.


Global Stock Positioning:  MSFT Dominates, Mag7 Record U/W, Apple Inflows, Tobacco Uninvestable?

<ul>
<li>The percentage of funds invested in Diageo and the average weight in UK portfolios have been on a downward trajectory since reaching a peak in late 2021.</li>
<li>Rotation within the Consumer Staples sector sees BATS and Reckitt's joining Diageo, whilst Tesco, Britvic and Cranswisk make sustained gains.</li>
<li>Significant exits from Axa Framlington, abrdn, and PrivilEdge have reduced average fund exposure to its lowest point since 2017</li>
</ul>


The percentage of funds invested in Diageo and the average weight in UK portfolios have been on a downward trajectory since reaching a peak in late 2021.
Rotation within the Consumer Staples sector sees BATS and Reckitt's joining Diageo, whilst Tesco, Britvic and Cranswisk make sustained gains.
Significant exits from Axa Framlington, abrdn, and PrivilEdge have reduced average fund exposure to its lowest point since 2017


Diageo PLC: Slide Continues as UK Funds Cut Stakes

Equity Research Focusing on the Consumer Sector, Small Cap Consumer Research

Small Cap Consumer Research

Equity Research Focusing on the Consumer Sector

Small Cap Consumer Research, LLC is a leading company-sponsored equity research provider focusing on the consumer sector (apparel, brand licensing and specialty retailing segments).

<ul><li>We are reiterating our Buy rating and $0.25 price target, but reducing our projections after Starco Brands posted a lower than expected 2Q24 and did not provide 2024 guidance, as management continues to pivot to multiple new and expanded retailer relationships for virtually all their brands, including the addition of Costco as a key new partner.</li><li>We believe, beginning in 3Q24, Starco will take their stable of brands to a new level in terms of door penetration which, when combined with an aggressive focus on adding new categories, will position the company for strong top line and Adjusted EBITDA expansion for 2025 and beyond.</li><li>As such, we continue to view the future of Starco as strong, and we reiterate our Buy rating and $0.25 price target for STCB.</li></ul>

We are reiterating our Buy rating and $0.25 price target, but reducing our projections after Starco Brands posted a lower than expected 2Q24 and did not provide 2024 guidance, as management continues to pivot to multiple new and expanded retailer relationships for virtually all their brands, including the addition of Costco as a key new partner.We believe, beginning in 3Q24, Starco will take their stable of brands to a new level in terms of door penetration which, when combined with an aggressive focus on adding new categories, will position the company for strong top line and Adjusted EBITDA expansion for 2025 and beyond.As such, we continue to view the future of Starco as strong, and we reiterate our Buy rating and $0.25 price target for STCB.

elf Beauty Inc - STCB: 2Q Review: Adding Costco, Planning for the Future, Reiterate Buy

United Kingdom

Diageo plc produces, distills and markets alcoholic beverages.  The Company offers a wide range of branded beverages, including vodkas, whiskeys, tequilas, gins, and beer.

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Diageo Plc (DGE LN)

Primer: Diageo Plc (DGE LN) - Sep 2025

Global Spirits Leader with Unmatched Portfolio: Diageo stands as a global leader in the alcoholic beverage industry, boasting an unparalleled...

αSK

STOXX Europe50 September 2025 Forecast: BBVA & RHM Set to Join, BAS & MBG to Exit

Main forecasted additions are BBVA and RHM, while MBG and BAS are the main forecasted deletions. DBK , BA., and BARC are potential replacement...

Dimitris Ioannidis

Global Stock Positioning: MSFT Dominates, Mag7 Record U/W, Apple Inflows, Tobacco Uninvestable?

The latest in stock-level investor positioning among over 300 active Global funds. We explore the AI boom, key over/underweights, Tobacco's...

Steven Holden

Diageo PLC: Slide Continues as UK Funds Cut Stakes

UK fund managers are continuing to reduce their positions in Diageo. The percentage of funds invested in Diageo and the average weight in UK...

Steven Holden

elf Beauty Inc - STCB: 2Q Review: Adding Costco, Planning for the Future, Reiterate Buy

We are reiterating our Buy rating and $0.25 price target, but reducing our projections after Starco Brands posted a lower than expected 2Q24 and...

Small Cap Consumer Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Primer: Diageo Plc (DGE LN) - Sep 2025

Global Spirits Leader with Unmatched Portfolio: Diageo stands as a global leader in the alcoholic beverage industry, boasting an unparalleled...

αSK

STOXX Europe50 September 2025 Forecast: BBVA & RHM Set to Join, BAS & MBG to Exit

​Main forecasted additions are BBVA and RHM, while MBG and BAS are the main forecasted deletions. DBK , BA., and BARC are potential replacement...

Dimitris Ioannidis

Global Stock Positioning: MSFT Dominates, Mag7 Record U/W, Apple Inflows, Tobacco Uninvestable?

The latest in stock-level investor positioning among over 300 active Global funds. We explore the AI boom, key over/underweights, Tobacco's...

Steven Holden

Diageo PLC: Slide Continues as UK Funds Cut Stakes

UK fund managers are continuing to reduce their positions in Diageo. The percentage of funds invested in Diageo and the average weight in UK...

Steven Holden

elf Beauty Inc - STCB: 2Q Review: Adding Costco, Planning for the Future, Reiterate Buy

We are reiterating our Buy rating and $0.25 price target, but reducing our projections after Starco Brands posted a lower than expected 2Q24 and...

Small Cap Consumer Research

Main forecasted additions are BBVA and RHM, while MBG and BAS are the main forecasted deletions. DBK , BA., and BARC are potential replacement...