Australia's Treasury Wine falls after rating downgrade on US distribution concerns

Treasury Wine Estates

15/01/2026 24:01

Updates

** Shares of Treasury Wine Estates TWE.AX drop as much as 3.7% to A$5.16, posting their biggest intraday pct fall since December 18

** Stock among top losers on the broader Australian benchmark index .AXJO, which is up 0.4%, as of 1151 GMT

** Citi downgrades luxury winemaker to "sell" from "neutral", but keeps price target at A$4.8 apiece

** Republic National Distributing Company (RNDC) said on Wednesday it was considering divesting operations in seven states in the United States

** RNDC wholesales for TWE in at least five of them

** "Not the news the company needed to start 2026" — Citi

** RNDC one of the largest U.S. wholesale beverage alcohol distributors, specialising in wine and spirits across multiple states

** Citi says RNDC development has potential to "adversely" impact TWE's 2H26 earnings

** Three of 15 analysts rate the stock "buy" or higher and 12 "hold", their median PT is A$5.20 – LSEG data

** TWE down 1.4% YTD after a 53.8% drop in 2025

 (Reporting by Aamir Sheik Khalid in Bengaluru)

 ((Aamir.SheikKhalid@thomsonreuters.com))