So will Treasury Wine Estates (TWE) be singled out by investors after China revealed details of its retaliatory duties on US food imports including pork, fruit, nuts and wine. The tariffs of up to 25% are a response to the Trump administration’s new tariffs on steel and aluminium imports?
US retail sales data reveals the company has markedly improved sales in July. The improvement came with a strong launch of Beringer Bros. Credit Suisse is impressed with Treasury Wines' execution under the new distribution model.
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.
Morgan Stanley considers the slowdown in China temporary and believes the market should look through recent weakness. The broker downwardly revises earnings forecasts by -2-6% to reflect a slower Chinese market.