Insights

Top broker tips Treasury Wine (ASX:TWE) share price to rise 17%

One broker believes this wine giant’s shares are poised to rise…
The post Top broker tips Treasury Wine (ASX:TWE) share price to rise 17% appeared first on The Motley Fool Australia. –

The Treasury Wine Estates Ltd (ASX: TWE) share price is pushing higher again on Wednesday.

In afternoon trade, the wine giant’s shares are up 1% to $11.99.

This means the Treasury Wine share price is now up 25% since the start of the year.

Where next for the Treasury Wine share price?

The good news for investors is that the Treasury Wine share price could still have room to run higher.

That’s the view of the team at Morgans, which have recently retained their add trading and $14.01 price target on the company’s shares.

Based on the current Treasury Wine share price, this suggests there’s still almost 17% upside over the next 12 months.

Why is the broker bullish?

According to the note, the broker felt that Treasury Wine’s FY 2021 results last month were commendable.

Morgans commented: “Given the number of external headwinds TWE faced in FY21, we think its result was commendable, with many areas across the business beating expectations.”

And while it acknowledges that no guidance was given and COVID-19 is creating uncertainty, the broker remains positive on its outlook.

This is particularly the case for the longer term, which Morgans highlights should be supported by sustainable top line growth and falling costs.

It said: “We forecast double digit EBITS growth in FY23 and FY24 from materially lower COGS, a full COVID recovery, benefits from its new operating model and Penfolds reallocation strategy.”

What else?

In addition, the broker was pleased with the company’s restructuring. It believes the restructuring leaves the company well placed for growth and the Treasury Wine share price undervalued on a sum of the parts (SOTP) basis.

Morgans explained: “TWE’s new divisional operating model is now in place and is aimed at maximising the benefits of separate focus across its brand portfolios, rather than regions. We think its new structure is essentially trying to create the benefits of a demerger without actually demerging. TWE is now better positioned to take advantage of previously untapped growth opportunities across the globe, including M&A.”

“The new divisions allow the market to properly value the Penfolds brand and in our view, proves that the SOTP is worth more than the whole. We maintain an Add rating,” it added.

The post Top broker tips Treasury Wine (ASX:TWE) share price to rise 17% appeared first on The Motley Fool Australia.

Should you invest $1,000 in Treasury Wine right now?

Before you consider Treasury Wine, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Treasury Wine wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

2 ASX 200 (ASX:XJO) shares that brokers rate as buys

Is the current Treasury Wine (ASX:TWE) share price a bargain?
2 more of the best ASX share ideas according to this leading broker

Here are the 3 hottest ASX shares to buy right now: expert

Could this be the next international challenge for Treasury Wines (ASX:TWE)?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!