Jefferies downgrades, Citi upgrades Australia's Treasury Wine after promise of new strategy

Treasury Wine Estates

17/12/2025 18:58

** Jefferies downgrades Australia's Treasury Wine Estates TWE.AX to 'hold' from 'buy'; cuts price target to A$5.20 from A$8.00
** Brokerage's action comes after the winemaker cancelled remainder of stock buyback and forecast sharply lower earnings in first half of fiscal 2026 amid weak demand in key US and China markets
** "It may take 2 years for EBITS drag to dissipate and  there is risk of further US disruption" - Jefferies
** Citi on the other hand, upgrades Penfolds maker to 'neutral' from 'sell', believes CEO's strategies to improve position and prospects seem 'reasonable'
** Brokerage also of the opinion that co's 1H26 result 'de-risked by guidance'
** 10 of 15 analysts 'hold' rated on shares, 1 'strong sell' and remaining recommend 'buy' or higher, as per LSEG-compiled data

 (Reporting by Nichiket Sunil in Bengaluru)

 ((Nichiket.Sunil@thomsonreuters.com))