Australia's Treasury Wine falls nearly 9%, UBS downgrades to 'sell'

Treasury Wine Estates

06/02/2026 03:35

** Australia's Treasury Wine Estates TWE.AX falls 8.8% to A$5.035, lowest since December 23; stock down 6.1% so far this week

** UBS downgrades luxury winemaker to "sell" from "neutral", cuts price target to A$4.75 from A$5.25

** Says Penfolds grey market supply has risen significantly in China as the supply chain has not been managed, indicating less local demand built in new markets

** Market execution in the U.S. mixed, with doubts rising on the financial health of key U.S. distributor, Republic National Distributing Company (RNDC) - UBS

** Brokerage says net debt to EBITDA ratio forecast for H1FY26 is 2.5x, above its target range of 1.5x-2x

** Says industry-wide decline in alcohol demand and underperformance of wine pose significant challenge for co

** TWE down 3.9% YTD

(Reporting by Keshav Singh Chundawat in Bengaluru)

((Keshav.singhchundawat@thomsonreuters.com))