Jefferies, Citi cite China macro factors to justify Treasury Wine's 'buy' rating

Treasury Wine Estates

10/12/2024 22:35

** Brokerages Jefferies and Citi cite Chinese economic
factors to positively impact Australian winemaker Treasury Wine
Estates  TWE.AX  
    ** Jefferies sees potential Chinese stimulus next year as
positive to earnings, while looking for more signs of improved
consumption
    ** Citi argues China recovery exceeding expectations, also
cites better-than-expected outlook for TWE and improved
performance of its DAOU brand.
    ** Jefferies views purchase of Ningxia Stone and Moon Winery
in China not financially material but confirms co's commitment
to China market.
    ** Both brokerages maintain "buy" rating, keep PT unchanged
at A$12.97 and A$15.50, respectively
    ** 13 of 15 analysts rate the stock "buy" or higher, 2
"hold"; their median PT is A$14.30 — LSEG
    ** Stock has risen 10.9% YTD, as of last close

 (Reporting by Nichiket Sunil in Bengaluru)
 ((Nichiket.Sunil@thomsonreuters.com))