Buy, hold, or sell? Treasury Wine, Domino’s Pizza, and Telstra shares

S&P/ASX 200 Index (ASX: XJO) shares appear to be staging a comeback after a 7.8% fall last month due to the war in Iran.

In April so far, ASX 200 shares have recovered by 2.91%. However, trading activity remains volatile.

Meantime, brokers have reviewed their ratings on the following three ASX shares.

Telstra Group Ltd (ASX: TLS) 

Telstra is the largest ASX communications share on the market.

Ord Minnett issued a new note on Telstra shares yesterday.

The broker maintained its accumulate rating with a 12-month target of $5.50.

Telstra shares hit a record high of $5.44 apiece on Tuesday.

Ord Minnett said it raised its earnings per share (EPS) estimates for FY26-FY28 after the telco announced some price increases.

The broker said:

Telstra has flagged it will raise prices on almost all of its post-paid and prepaid mobile phone plans from 5 May, two months ahead of the 1 July start date it used last year, and cease sales of its non-advertised 5 gigabyte (GB) ‘starter plan’ to new customers from the same date.

Ord Minnett views the scale of the changes as largely in line with consensus estimates and see them as supportive of Telstra’s target of generating operating earnings growth of $300 million per annum.

Treasury Wine Estates Ltd (ASX: TWE)

Treasury Wine Estates owns household-name wine brands including Penfolds, Wynns, Wolf Blass, Lindemans, and Squealing Pig. ‍

Ord Minnett issued a new note on this ASX wine share yesterday.

The broker upgraded Treasury Wine shares from lighten to hold and cut its price target from $5 to $4.50.

Treasury Wine shares closed the session yesterday at $3.78, up 1.3%.

The stock has fallen 28.7% in the year to date (YTD) and 55.7% over 12 months.

Ord Minnett said it had increased its debt assumptions due to tight grape supply contracts in the US and Australia.

The broker said:

‍Combined, the impact of these contract terms means Ord Minnett estimates Treasury’s inventory will increase again in FY27 before scaling down in the following years.

Size-wise, we see inventory topping out at circa $2.9 billion, a whisker away from the company’s current market capitalisation and twice the inventory size it held a decade ago.

We raise our recommendation to Hold from Lighten, however, given the stock’s lost 18% slide in March and fall of decline of almost 30% in the year to date.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Domino’s Pizza shares closed at $17.06 on Tuesday, up 6.8%.

The ASX consumer discretionary share has fallen 21.8% YTD and 29.5% over 12 months.

On The Bull this week, Michael Gable from Fairmont Equities revealed a sell rating on Domino’s shares.

Gable explained:

Although the share price of this fast food company has lost a lot of value in the past few years and recently remained in a downtrend, I don’t see any price support emerging at current levels.

The company is entering a challenging period, where increasing costs and lower consumer confidence could erode margins and put downward pressure on earnings.

I can’t identify a positive catalyst at least until the company posts full year results in August.

I expect investors to continue selling the stock on any sharemarket bounce.

The post Buy, hold, or sell? Treasury Wine, Domino’s Pizza, and Telstra shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Telstra Group and Treasury Wine Estates. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.