Jefferies flags US share losses, inventory risks for Treasury Wine Estates; shares rise
BUZZ-Jefferies flags US share losses, inventory risks for Treasury Wine Estates; shares rise ** Shares of winemaker Treasury Wine Estates TWE.AX advances as much as 1.3% to A$4.68 by noon in Sydney
** Jefferies flags TWE's ongoing U.S. market share losses, excess inventory and distributor disruption weighing on performance
** Says market research provider Nielsen's data shows the company "continues to lose share at all price points" despite a modest recovery in higher-end wines
** Jefferies highlights risks from a need to clear material excess channel inventory alongside continued disruption among distributors in key U.S. markets
** Notes TWE significantly underperforms the wider US wine market, with value sales down sharply and volumes declining faster than peers
** Adds, even the luxury segment lags, with TWE's premium brands weakening while the broader high-end category shows growth, signalling execution challenges
** Jefferies keeps stock at a "Hold" rating at a price target of A$5/shr
** YTD stock down ~11%
(Reporting by Kumar Tanishk in Bengaluru)
((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))
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