Australia's Treasury Wine Estates rises after asset sale; Citi says debt cut to please investors
Shares of Treasury Wine Estates (TWE.AX) rose as much as 1.5% to A$5.440 on Tuesday, trading among the top gainers on the ASX Staples index. The sale of the Seppelt brand, Great Western Winery and Drumborg vineyard is the first in a series of planned asset sales intended to accelerate debt reduction. Citi reiterated its 'buy' rating with a price target of A$6.95, noting the move would please investors.
3%. 95 target price, kept a positive view on TWE after the sale of the Seppelt brand, Great Western Winery and Drumborg vineyard. The bank said the sale was the first in several planned asset sales that would speed debt reduction and please investors. TWE had earlier said it would write down inventory, mainly bulk wine, and expects to manage that through sales into bulk wine markets and internal reclassification.
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