. Diageo (LSE: DGE) The price of the action was a constant spiral down the last 18 months and it just won’t end.

This is a huge blow to investors who bought shares after a profit warning in November 2023, thinking that they were packing the opportunity. They were not, as I know for my costs. I was one of those seekers of opportunities.

I saw an initial decline as a momentary failure caused by slowing down the problems with sales and wrestling on one of its markets, Latin America and the Caribbean. But what began as a petite correction has changed on a full -scale route.

Diageo shares have dropped by 30% over the past year and now break another 52-week low after a decrease in 6% last week.

Can this former hero FTSE 100 fight?

The global economic crisis played an vital role, which causes a departure from premium spirits when consumers decrease to cheaper jewels.

Troubles in China, a key growth market, increased pressure. In addition, younger generations drink less alcohol, increasing concerns about long -term demand.

All this has significantly denied investors trust, including mine, reducing the price-profit ratio to Diageo’s profit from about 24-fold earnings to 15.5 times today.

On the other hand, the lower valuation means that the shares now look at a more attractive price. They also offer 3.8% dividend performance, which is relatively high according to Diageo standards. Diageo still has a brilliant range of drinks, including the most effective in the world, Guinness.

There were flashes of optimism among the darkness. On December 5, Jefferies modernized the shares with Hold to Buy, raising the target price from 2,300 pens to 2800 pens. Today, shares trade at 2,037 pence.

Just a week later UBS He issued a infrequent double update, transferring the recommendation from sales to purchase and wandering the target price from 2300 pens to 2 920p. Diageo said “It is at the end of the earning reduction cycle”.

Still unstable investment

However, I am not sure if we can say it today. Just when DiagEo looked like he could stabilize, a modern threat appeared – Donald Trump’s trade tariffs, especially in Mexico and Canada.

They could hit TEQULI Diageo Don Julio AND Casamigosand the whiskey brand Crown Royal Canadian.

Yesterday Trump threatened a 200% tariff on all alcoholic products coming out of the EU. Of course, we do not know whether he or whether it extends to Great Britain, but this is another worry.

For now, however, analysts hope. 21 experts offering annual share price forecasts have created a median target 2,528 pence. If it is correct, it is an raise of almost 22% compared to today’s 2,073 pence. We’ll see. Forecasting is uncertain in the best times. In today’s crazy world he is close to nonsense.

As a Diageo shareholder, everything I can do is sit tightly and tell yourself that he is always the darkest before dawn. But I’m less confident about his miniature -term regeneration prospects than those analysts.

As this deterioration of the economic situation, I think investors will have to be very, very patient when they wait for diageo to fight. At some point, the return should come. Probably unexpectedly. Probably at speed. I just have no idea when.