UBS highlights recent export data showing the luxury/premium category for wine is growing well in the US and Asia-ex China. This is considered a positive for Treasury Wine Estates which has recently skewed its own export volumes to this category.
Strengthening prices are particularly good news for the Penfolds brand, according to the broker. The Buy rating and $13.50 target price are maintained.
Sector: Food, Beverage & Tobacco.
Target price is $13.50.Current Price is $10.80. Difference: $2.70 – (brackets indicate current price is over target). If TWE meets the UBS target it will return approximately 20% (excluding dividends, fees and charges – negative figures indicate an expected loss).
