UBS observes Treasury Wines share loss is accelerating in the US. Overall, the broker forecasts a -9% decline in second half volume in the Americas.
Still, the broker believes the near-term risks are outweighed by the longer-term value and retains a Buy rating. Target is $14.80.
No challenges to the balance sheet are foreseen and there are potential catalysts via the restructure of the Americas commercial business and de-merger of Penfolds.
Sector: Food, Beverage & Tobacco.
Target price is $14.80.Current Price is $10.47. Difference: $4.33 – (brackets indicate current price is over target). If TWE meets the UBS target it will return approximately 29% (excluding dividends, fees and charges – negative figures indicate an expected loss).