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Treasury Wine Estates
Credit Suisse has upgraded Treasury Wine from "underperform" to "neutral" despite uncertainty around the Chinese export market. The broker said that any issues with Chinese customs authorities could be solved with an adjustment to Treasury's business model. The broker also said that recent media reports of a glut in the Chinese market were, in their opinion "exaggerated" and that Treasury Wine had a history of rectifying previous inventory issues with its Rawsons Retreat brand. It says the issue is small enough to be contained and that the company can still achieve its FY19 growth through its luxury brands. Credit Suisse did however note that consensus FY20 EPS was too high. It says the company's 2018 vintage was a high-cost vintage and that it would have to cover that excess cost with a new cost reduction program.
SMH: disallowed/business/asx-records-first-weekly-loss-since-march-20180518-h1085d.html
CHEERS.
Stock watch Treasury Wine Estates Credit Suisse has upgraded...
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