Treasury Wine Estates’ peer NAPA’s Duckhorn portfolio’s third-quarter earnings revealed gains in market share and price-mix, suggesting the US on-premise market is showing signs of recovery, particularly in the $15-plus a bottle price point, posits UBS.
The broker says NAPA expects a full recovery by late FY23 and considers the read-through to be positive for TWE Americas.
Buy rating and $13.50 target price retained.
Sector: Food, Beverage & Tobacco.
Target price is $13.50.Current Price is $11.79. Difference: $1.71 – (brackets indicate current price is over target). If TWE meets the UBS target it will return approximately 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).
