Brokerages cautious on outlook for Australia's Treasury Wines, shares fall

Treasury Wine Estates

25/06/2025 03:47

Updates

** Shares of Treasury Wine Estates TWE.AX fall 1.7% to A$7.865, hitting their lowest since June 3

** Citi sees uncertainty to remain over the winemaker's outlook and potential for it to stay an overhang until CY26

** Brokerage forecasts FY26 EBITS of A$831 million ($539.65 million)

** We remain incrementally cautious on Penfold's growth prospects in China — Citi

** Brokerage also cuts target price by 2% to A$8.50

** Morgan Stanley says change of TWE's California distribution creates additional risk to management's outlook as Americas region remains a source of weakness

** MS cuts EPS estimates by 5% for fiscals 2026 and 2027

** Brokerage also reduces price target to A$10.75 from A$12

** Including day's moves, stock down 30.6% YTD

($1 = 1.5399 Australian dollars)

 (Reporting by Shivangi Lahiri and Nikita Maria Jino in Bengaluru)

 ((shivangi.lahiri@thomsonreuters.com))