• The Chinese tariffs on imported wine may be lifted.
  • Treasury Wine Estates maintained revenues and profits despite the COVID-19 pandemic and the tariffs.
  • On 24th May, the stock began to sell off following weak Full Year 2023 financial guidance.

One of the world’s top wine producers, Treasury Wine Estates, has made an acquisition to expand its premium wine business in the US – the California-based DAOU Vineyards.

The announcement came on 31st October, along with the news of an upcoming capital raise.

The stock price sold off heavily following the release of weak 2023 Full Year guidance back in May and sold off again on the news of the acquisition.

Year to date, the share price is down 19.38%.



Top Australian Brokers


Source: ASX

Treasury Wine Estates has been paying dividends for the past decade, with a five-year average dividend payment of $0.32 per share and a five-year average yield of 2.60%.

The current yield is 3.44% with a fully franked dividend of $0.34 per share.

An analyst at Baker Young has a BUY recommendation on Treasury Wine Estate shares, pointing to the sharp sell-off following the acquisition and capital raise putting “the shares at attractive levels, particularly if China reduces tariffs on imported Australian wine”.

Overall, the analyst community is bullish on TWE shares.

MarketScreener is reporting 13 analysts covering the stock, with a consensus OUTPERFORM rating. Six analysts are at BUY, four at OUTPERFORM, two at HOLD, and one at SELL.

The Wall Street Journal is reporting an OVERWEIGHT consensus rating, with 10 analysts at BUY, two at OVERWEIGHT, two at HOLD, and one at UNDERWEIGHT.

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