TWE – Citi rates the stock as Sell

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Citi analysts are happy to stick with their Sell rating for Treasury Wines, as forecasts remain below market consensus and the greater risk, in the analysts’ opinion, lays with the US wine market facing the prospect of over-supply.

The company is still sizing up acquisition targets Jackson Family Wines and Ste Michelle, report the analysts, but they don’t anticipate anything more than a “modest” EPS accretion initially were any of these potential deals be concluded. Target $14.90.

Sector: Food, Beverage & Tobacco.

Target price is $14.90.Current Price is $15.56. Difference: ($0.66) – (brackets indicate current price is over target). If TWE meets the Citi target it will return approximately -4% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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