Treasury Wine Estates Faces Challenges in the US Business, But Some Positive Signs Emerging, Says Jefferies
MT Newswires Live
Mar 04
Treasury Wine Estates' (ASX:TWE) overall US wine category remains challenged, although some positive signs are emerging in the luxury segment with prices above $20 per bottle, according to a Tuesday Jefferies note.
The investment firm said that Treasury Wine continues to underperform the broader market by a "significant" margin, but the performance gap relative to the market appears to be narrowing somewhat.
There are ongoing risks to earnings due to two key factors, including the need to reduce a substantial level of excess inventory held in distribution channels and the potential for further disruption among distribution partners in the US.
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