Both Distil (AIM:DIS) PLC and Virgin Wines UK PLC (AIM:VINO) announced poor results today prompting profit warnings.
Wayne Brown, an analyst at Liberum, remains positive about Virgin Wines despite stating the “first half performance was impacted by several one-off non-recurring items.
“We look towards the second half with confidence as the internal issues are close to being resolved and the growth dynamics and strategy remain intact.”
The bank targeted a share price of 100p but following the online retailer's trading update shares have fallen by 24% to 54p.
Distil (AIM:DIS)’s share price has suffered the same fate, down 36% today it’s now trading at 0.57p.
Deutsche Bank downgraded five drinks groups this morning including Pernod Ricard, Fevertree Drinks (AIM:FEVR), and Remy Cointreau
Fevertree, popular for its tonic mixer, is down nearly 60% in the last year, weighed by reports that the craft gin trend may be fading.
Yet, how does this fare for the “best-in-class long-term value generator” Diageo PLC (LSE:DGE)?
Whilst Deutsche Bank reiterate a sell rating on the stock, US bank Jefferies rate the share a ‘buy’ as it “expects growth in 2023 to normalise towards the medium-term framework.
“Despite heightened volatility, we see Diageo navigating an uncertain consumer environment given a favourable industry backdrop and strong execution” analysts at the bank added.
Diaego, which owns brands such as Smirnoff, Guinness, and Tanqueray, has seen shares remain steady over the last year (down 3.2%) and is currently trading at £36.63.
The company, which offers a 2.1% annual dividend yield, will update investors on its interim results on 26 January.