BUZZ - Australian winemaker Treasury Wine recovers early losses, Jefferies believes its troubles in the US are easing

路透社2026/10/07 04:16

Show original

October 7th - Treasury Wine Estates (TWE.AX) shares recovered a 1.8% loss in afternoon trading and were basically flat. Jefferies maintained a "Hold" rating on TWE and an AUD 6 target price, stating that although excess inventory and rising costs in the US market are limiting upside potential, TWE’s underperformance relative to the broader market has been narrowing. The brokerage expects a 1.2% increase in EBIT for fiscal year 2027 and notes that the US wine market is showing moderate growth in the higher price segment. Jefferies mentioned that the price segment below $20 still faces significant challenges and emphasized that low-priced wines continue to face pressure. The brokerage pointed out that competitor Constellation Brands’ (STZ.N) wine and spirits business saw organic sales increase by 17.2% in the second quarter, with sales to retailers up by 10.2%. TWE shares have risen 6.1% year-to-date. (For the convenience of non-English speakers, Reuters offers automated translations of its report into a number of other languages. Automated translation may contain errors or may not capture the intended context, and Reuters does not guarantee the accuracy of this text. It is provided only for convenience, and Reuters is not liable for any damage or loss caused by the use of automated translation.)

Bitget offers one-stop trading for cryptocurrencies, stocks, and gold. Trade now!

A welcome pack worth 6200 USDT for new users! Sign up now!

October 7 - ** The share price of wine producer Treasury Wine Estates (TWE.AX) recovered its 1.8% decline in afternoon trading, closing flat overall

** Jefferies maintained its "Hold" rating and target price of 6 Australian dollars for TWE, noting that although excess inventory in the US market and rising costs are capping upside potential, the degree to which it lags behind the broader market is narrowing

** The firm estimates FY2027 EBIT will grow by 1.2%, and points out moderate growth in the US wine market in the higher-priced segment

** Jefferies stated that “the under $20 price segment still faces significant challenges” and emphasized continued pressure on low-priced wines

** The broker highlighted that competitor Constellation Brands’ (STZ.N) wine and spirits segment posted 17.2% organic sales growth in the second quarter, with sales to retailers up 10.2%

** TWE’s share price has risen 6.1% year to date

(To facilitate non-native English speakers, Reuters has automatically translated its reports into several other languages. As machine translation may contain errors or fail to include the necessary context, Reuters does not guarantee the accuracy of these automated texts and provides them solely for the convenience of readers. Reuters accepts no liability for any damage or loss arising from the use of the machine translation function.)

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

Understand the market, then trade.

Bitget offers one-stop trading for cryptocurrencies, stocks, and gold.

Trade now！

As of market close, mining and banking stocks recorded the largest declines this week, as investors await the minutes of the Reserve Bank of Australia’s meeting scheduled for October 13. Boosted by a deal between Google and Constellation Energy, uranium mining stocks surged. On Wednesday, the Australian stock market closed slightly lower amid volatile trading, with global yields and oil prices remaining high, leading investors to adopt a wait-and-see attitude. The benchmark S&P/ASX 200 Index closed down 0.1% at 8,727.70 points, having risen as much as 0.2% during the session. The index had gained more than 1% over the past three trading days. The recent bond market sell-off kept the yield on the benchmark 10-year U.S. Treasury above 5.3%, dampening risk appetite among investors. Oil prices rose amid storm threats in the Gulf of Mexico and escalating tensions between Saudi Arabia and Houthi forces. According to BetaShares investment strategist Hugh Lam, despite persistently high bond yields, the stock market remains resilient with global corporate earnings serving as the main support; however, sustaining the rally through year-end is becoming increasingly difficult, especially for long-duration growth stocks. Rising yields signal the market expects higher borrowing costs for governments and corporations, and also anticipates sustained inflation. On the day, banking stocks fell 0.6%, marking their worst single-day performance in nearly a week. Of the “big four” banks, Westpac saw the largest drop, down 1.2%. The market is awaiting the Reserve Bank of Australia’s policy meeting minutes next week for insights into policymakers’ views on inflation, which prompted the central bank to raise interest rates last week to their highest levels in 15 years. September quarter consumer price data, due at the end of October, may provide further clues on the direction of interest rates. The mining sub-index slipped 0.3%, dragged down by falling copper prices. Industry leaders BHP fell 0.7% and Rio Tinto dropped 0.6%. Energy stocks rose 0.5%, driven by uranium miners after Google signed a 20-year power purchase agreement linked to nuclear power generation. Component stocks Deep Yellow, Paladin Energy, and NexGen Energy Ltd gained between 2.5% and 4.6%. New Zealand’s S&P/NZX 50 Index fell 0.1%, closing at 13,684.04 points.

路透社•2026/10/07 06:41