Citi 'incrementally cautious' on Australia's Treasury Wines' outlook

Treasury Wine Estates

24/06/2025 21:22

** Analysts at Citi expect uncertainty to remain over Treasury Wine Estates' TWE.AX outlook and potential for it to remain an overhang until CY26

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

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

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

** For recently acquired DAOU business, guidance implies that a reasonable proportion of $30 mln of FY26 synergies being offset by weaker underlying performance — Citi

** Stock down 29.4% YTD, as of last close

($1 = 1.5399 Australian dollars)

(Reporting by Shivangi Lahiri in Bengaluru)

((shivangi.lahiri@thomsonreuters.com))