Citi downgrades Australia's Treasury Wine to 'sell', flags US distribution concerns

Treasury Wine Estates

14/01/2026 20:35

** Citi downgrades luxury winemaker Treasury Wine Estates' TWE.AX rating to "sell" from neutral

** On Wednesday, Republic National Distributing Company (RNDC) said it was considering to divest operations in seven states

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

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

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

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

** Keeps price target at A$4.8 apiece

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

** TWE fell 53.8% in 2025

(Reporting by Aamir Sheik Khalid in Bengaluru)

((Aamir.SheikKhalid@thomsonreuters.com))