BUZZ - Australian winemaker Treasury Wine recovers early losses, Jefferies believes its troubles in the US are easing
路透社2026/10/07 04:16October 7th - Treasury Wine Estates (TWE.AX) shares recovered a 1.8% loss in afternoon trading and were basically flat. Jefferies maintained a "Hold" rating on TWE and an AUD 6 target price, stating that although excess inventory and rising costs in the US market are limiting upside potential, TWE’s underperformance relative to the broader market has been narrowing. The brokerage expects a 1.2% increase in EBIT for fiscal year 2027 and notes that the US wine market is showing moderate growth in the higher price segment. Jefferies mentioned that the price segment below $20 still faces significant challenges and emphasized that low-priced wines continue to face pressure. The brokerage pointed out that competitor Constellation Brands’ (STZ.N) wine and spirits business saw organic sales increase by 17.2% in the second quarter, with sales to retailers up by 10.2%. TWE shares have risen 6.1% year-to-date. (For the convenience of non-English speakers, Reuters offers automated translations of its report into a number of other languages. Automated translation may contain errors or may not capture the intended context, and Reuters does not guarantee the accuracy of this text. It is provided only for convenience, and Reuters is not liable for any damage or loss caused by the use of automated translation.)
October 7 - ** The share price of wine producer Treasury Wine Estates (TWE.AX) recovered its 1.8% decline in afternoon trading, closing flat overall
** Jefferies maintained its "Hold" rating and target price of 6 Australian dollars for TWE, noting that although excess inventory in the US market and rising costs are capping upside potential, the degree to which it lags behind the broader market is narrowing
** The firm estimates FY2027 EBIT will grow by 1.2%, and points out moderate growth in the US wine market in the higher-priced segment
** Jefferies stated that “the under $20 price segment still faces significant challenges” and emphasized continued pressure on low-priced wines
** The broker highlighted that competitor Constellation Brands’ (STZ.N) wine and spirits segment posted 17.2% organic sales growth in the second quarter, with sales to retailers up 10.2%
** TWE’s share price has risen 6.1% year to date
(To facilitate non-native English speakers, Reuters has automatically translated its reports into several other languages. As machine translation may contain errors or fail to include the necessary context, Reuters does not guarantee the accuracy of these automated texts and provides them solely for the convenience of readers. Reuters accepts no liability for any damage or loss arising from the use of the machine translation function.)
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