Morningstar mantains views on Australia's Treasury Wines on improving demand

By Reuters News

** Analysts at Morningstar maintain their fair value estimate for Treasury Wine Estates TWE.AX, 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

** Four of 14 analysts rate the stock "buy" or higher, 10 "hold"; their median PT is A$6.0, according to data compiled by LSEG

** Stock up 13.4% YTD, as of last close


($1 = 1.4453 Australian dollars)

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