Jefferies backs Diageo CFO swap

Jefferies has urged investors to buy any weakness in Diageo PLC (LSE:DGE) shares, arguing the market is likely to take the departure of its finance chief negatively but that it changes little for the drinks group's turnaround.

The broker reiterated a "buy" rating and a 2,200p price target on the FTSE 100 company, implying about 34% upside from 1,638.5p. Diageo, whose brands include Johnnie Walker and Guinness, said Nik Jhangiani would leave, with Joanne Wilson joining as chief financial officer in 2027.

Jefferies said Jhangiani had been central to shaping the current strategy and was well regarded by investors for his focus on execution, growth and cash delivery. Even so, the broker saw no read-across to the medium-term outlook or the turnaround plan, which it argued was embedded enough to survive a change at the top.

It described Wilson, currently CFO of advertising group WPP, as a credible successor. The analysts pointed to her background in operational finance and a strong record on cost efficiency, simplification and cash conversion, built over more than a decade at Tesco and senior roles at Britvic and WPP. Her previous working relationship with Diageo chief executive Dave Lewis should support alignment as the recovery gathers pace.

The appointment marks another leadership change under Lewis.