Citi sees Treasury Wine earnings recovery delayed until fiscal 2028 amid US destocking

Treasury Wine Estates

07/09/2026 19:43

** Citi says earnings at Australia's Treasury Wine Estates TWE.AX are unlikely to materially improve until FY28, once destocking is complete and project Ascent benefits come through
** Brokerage says significant destocking required in US and cash flows will not support earnings for some time due to one-off supply chain transformation costs which extend out to FY31
** Sees risk that some key brands mature faster than expected
** However, Citi remains constructive on Treasury's medium-term prospects, with new management executing on a strategy that is turning Treasury into a more focused, transparent, consumer-centric company with fewer brands and higher margins
** Four of 15 analysts rate the stock "buy" or higher and 11 "hold"; their median PT is A$6.00, according to data compiled by LSEG
** Stock up 6.5% YTD as of last close 

 (Reporting by Sneha Kumar in Bengaluru; Editing by Edmund Klamann)
 ((Sneha.Kumar@thomsonreuters.com;))