Brokers sour on Treasury Wine Estate outlook

Treasury Wine Estate’s announcement last week that it had made significant changes to its supply-chain network in the US and Australia and further opportunities had been identified to help in cutting overhead costs has failed to rejuvenate confidence, judging by analyst’s commentary. Both Citi and Deutsche Bank have sell recommendations on the stock with the former setting its 12-month price target at $4.90. Deutsche Bank is particularly bearish on the company with its price target of $4.00, some 25 per cent shy of the company’s current trading range.