UBS analyst Shaun Cousins has a 12-month price target of $15 on Treasury Wine Estates, which makes Penfolds, Wolf Blass and Wynns.
A potential end to a dispute where barley exports were hit with an 80.5 per cent tariff by the Chinese government has raised hopes of a resolution over heavy wine tariffs.
Treasury Wine shares were sitting above $19 in late 2019, with UBS estimating that about 30 per cent of overall profits were stemming from China exports.
Broker UBS rates Penfolds and Wolf Blass owner Treasury Wine Estates as a “buy”, and expects its share price to be at $15 by this time next year.
UBS analyst Shaun Cousins has crunched the numbers on a potential restart of Australian wine exports to China after the Australian and Chinese governments agreeing to a process to potentially resolve a dispute over 80.5 per cent duties slapped on Australian barley exports.
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Simon Evans writes on business specialising in retail, manufacturing, beverages, mining and M&A. He is based in Adelaide. Connect with Simon on Twitter. Email Simon at simon.evans@afr.com
