BUZZ — Australia's Treasury Wines rises as Morningstar maintains views on improving demand
(Updates) * Shares of Treasury Wine Estates rise as much as 2.5% to A$6.090, hitting their highest level since October 28, 2025 * Analysts at Morningstar maintain their fair value estimate for TWE, saying heightened core brands demand is offset by weak demand for cheaper wines * Adds, FY27 to be a transition year, earnings growth to resume FY28 onwards, forecasting reduced debt and a rebalanced inventory in both US and China * Annual underlying EBIT forecast from Morningstar stays the same at A$502 million ($347.33 million), expected to grow a further 8% to A$544 million by FY28 * Research investment firm sets fair value at A$7 a share, higher than TWE's last close, as it believes markets are undervaluing shares, fixating on cyclical near-term headwinds * Weekly, stock up 7%, best weekly performance in two months * Stock up 14.7% YTD, including the session's moves ($1 = 1.4453 Australian dollars) (Reporting by Rudrannsh Mehra & Paridhi Minda in Bengaluru) ((Rudrannsh.Mehra@thomsonreuters.com)
(Updates) * Shares of Treasury Wine Estates rise as much as 2.5% to A$6.090, hitting their highest level since October 28, 2025 * Analysts at Morningstar maintain their fair value estimate for TWE, saying heightened core brands demand is offset by weak demand for cheaper wines * Adds, FY27 to be a transition year, earnings growth to resume FY28 onwards, forecasting reduced debt and a rebalanced inventory in both US and China * Annual underlying EBIT forecast from Morningstar stays the same at A$502 million ($347.33 million), expected to grow a further 8% to A$544 million by FY28 * Research investment firm sets fair value at A$7 a share, higher than TWE's last close, as it believes markets are undervaluing shares, fixating on cyclical near-term headwinds * Weekly, stock up 7%, best weekly performance in two months * Stock up 14.7% YTD, including the session's moves ($1 = 1.4453 Australian dollars) (Reporting by Rudrannsh Mehra & Paridhi Minda in Bengaluru) ((Rudrannsh.Mehra@thomsonreuters.com)