Treasury Wine cuts losses as investors focus on China guidance

Treasury Wine Estates

13/02/2025 01:57

(Updates)
    ** Shares of Australia's Treasury Wine Estates  TWE.AX 
recoup some early losses, last down 3.9% at A$10.72
    ** Stock falls as much as 8.5% earlier in the day, as co
drops planned sale of its cheaper brands and lowers earnings
forecast
    ** TWE's H1 results mostly upbeat as exports to China roar
back to life after the end to three years of crippling tariffs
imposed by Beijing
    ** Co seems to have increased confidence about its ability
to sell into China, say analysts at Citi 
    ** Say increased confidence reflects brand health, depletion
trends and rising customer demand, a move which might suggest
upside to multi-year earnings rise for Penfolds brand
    ** Feeling incrementally more positive on China prospects
post conference call - Citi
    ** Stock down 7.2% this year, including day's move

($1 = 1.5929 Australian dollars)

 (Reporting by Rishav Chatterjee and  Aaditya Govind Rao in
Bengaluru)
 ((Aaditya.govindrao@thomsonreuters.com;))