Is the Treasury Wine share price a buy before the company reports this week?

Are Treasury shares a buy today ahead of its earnings?

| More on:
Couple look at a bottle of wine while trying to decide what to buy.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Treasury Wines is scheduled to report its full-year earnings this week 
  • We do not yet know what the winemaker will hand down on Thursday 
  • But we can look at what some ASX experts are saying about this ASX 200 share today... 

It's a big week for the Treasury Wine Estates Ltd (ASX: TWE) share price this week. Not because Treasury shares put on a pleasing 1.13% today to $12.51 a share (although that will no doubt be welcomed by shareholders.

But it's because Treasury is scheduled to report its full-year earnings for the 2022 financial year on Thursday (18 August).

Now, of course, we don't know exactly what will be in this earnings report until we see it. But what we can do is see what some of ASX's top experts are saying about this wine company in the lead-up to this reporting date.

Experts rate the Treasury Wine share price

So let's start with ASX broker Morgans. Earlier this month, my Fool colleague James covered Morgans' add rating on Treasury shares. The broker named the winemaker as one of the best buys this August.

It declared a 12-month share price target of $13.93 for Treasury, which represents an upside of more than 11% from where the company sits today. Here's some of what the broker said in its decision:

TWE owns much loved iconic wine brands, the jewel in the crown being Penfolds. We rate its management team highly. The foundations are now in place for TWE to deliver strong earnings growth from the 2H22 over the next few years. Trading at a material discount to our valuation and other luxury brand owners, TWE is a key pick for us.

Is Treasury an inflation hedge?

But Morgans isn't the only expert eyeing off Treasury Wines today. My Fool colleague Tony also went through the views of John Ayoub last week. Ayoub is the lead portfolio manager at listed investment company (LIC) WAM Leaders Ltd (ASX: WLE). Here's some of what he said about Treasury:

Under the leadership of Tim Ford… Treasury Wine Estates has successfully repositioned itself away from China.. The business is now in a much stronger position than it was prior to the tariffs, allowing the company to shift back to a growth mindset…

In the current environment, Treasury Wine Estates is set to outperform… Wine consumption has proven defensive in previous economic downturns, the company is well positioned to pass through inflationary pressures and it has well-recognised brands and strong vintages that are in perennial demand.

So that's how these two ASX investing experts view the Treasury share price as we head towards its earnings this week. It will be interesting to see if their views remain the same after we hear from the company.

But in the meantime, the current Treasury Wine Estates share price gives this ASX 200 consumer staples share a market capitalisation of $8.93 billion, with a dividend yield of 2.4%.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Consumer Staples & Discretionary Shares

Happy couple doing grocery shopping together.
Consumer Staples & Discretionary Shares

What is Bell Potter saying about the Woolworths share price?

Is it recommending Woolies as a buy?

Read more »

A man cheers after winning computer game while woman sitting next to him looks upset.
Earnings Results

2 high-flying ASX 200 gaming shares splitting ways today

Which gaming giant is winning the admiration of investors amid results?

Read more »

Two brokers analysing stocks.
Broker Notes

Don't miss these changes to broker ratings on ASX shares

The verdicts are in.

Read more »

a man stands with his arms folded in front of banks of unused poker machines in a darkened gaming room.
Consumer Staples & Discretionary Shares

Up 59% in 2024, why this ASX 200 stock is making noise today

Big money for this company's free offering.

Read more »

A company manager presents the ASX company earnings report to shareholders at an AGM.
Consumer Staples & Discretionary Shares

Why today is a big day for Coles shares

And not because of any outsized share price moves.

Read more »

A child pulls a very sad crying face sitting in the child seat of a supermarket trolley in a supermarket aisle lined with grocery items.
Consumer Staples & Discretionary Shares

Why did the Woolworths share price just hit a new 4-year low?

Pressures continue for the supermarket giant.

Read more »

Couple look at a bottle of wine while trying to decide what to buy.
Consumer Staples & Discretionary Shares

Guess which ASX 200 stock just hit an all-time low following a profit warning

Higher costs and flat sales are weighing on this blue-chip stock.

Read more »

Family shopping for groceries
Consumer Staples & Discretionary Shares

This expert says Coles shares are a discounted bargain buy right now

The supermarket business is worth putting in the stock trolley to buy.

Read more »