Treasury Wine falls as Citi sees earnings recovery delayed until fiscal 2028
BUZZ-Treasury Wine falls as Citi sees earnings recovery delayed until fiscal 2028 Updates
** Shares of Treasury Wine Estates TWE.AX fall as much as 2.5% to A$5.44 in early trade, their largest intraday pct loss since September 4
** Citi says earnings for the winemaker are unlikely to materially improve until FY28, once destocking is complete and project Ascent benefits come through
** Brokerage says significant destocking required in the U.S. and cash flows will not support earnings for some time due to one-off supply chain transformation costs which extend out to FY31
** Sees risk that some key brands mature faster than expected
** However, Citi remains constructive on Treasury's medium-term prospects, with new management executing on a strategy that is turning Treasury into a more focused, transparent, consumer-centric company with fewer brands and higher margins
** Stock up 4.8% YTD, including the day's moves
(Reporting by Sneha Kumar and Nikita Maria Jino in Bengaluru; Editing by Edmund Klamann)
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