Australia's Treasury Wines rises as Morningstar maintains views on improving demand

By Reuters News00:36 (UTC), 16 October 2026 Updated

** Shares of Treasury Wine Estates TWE.AX 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)