Jefferies says Treasury Wine's latest impairments clear path for future earnings

Treasury Wine Estates

10/08/2026 19:45

** Treasury Wine Estates' TWE.AX latest U.S. impairments reflect known challenges and could support future earnings by lowering depreciation, amortisation and inventory write-down charges, Jefferies says
** The Penfolds owner says it would reduce the size of its U.S. North Coast vintages from 2026, and write down inventory, mainly bulk wine
** Jefferies says additional U.S. impairments tied to supply chain rationalisation, inventory write-downs and brand impairments underscore ongoing challenges in the Americas business, but sees signs the worst of distributor disruption has passed
** Brokerage adds Penfolds continues to outperform category trends, supported by brand strength and management's handling of grey-market sales, helping offset weakness in the U.S. business
** Five of 15 analysts rate the stock "buy" or higher, 10 "hold"; their median PT is A$5.20 - LSEG data shows
** Stock up 8% YTD

 (Reporting by Roshan Thomas in Bengaluru)
 ((Roshan.Thomas@thomsonreuters.com;))