The Treasury Wine Estates Ltd (ASX: TWE) share price has made significant ground this month.
The company’s shares have surged nearly 10% from market close on 14 February. The Treasury Wine share price is currently trading at $11.69, up 1.3% on Friday’s close.
Let’s take a look at what is happening at Treasury Wine.
Treasury Wine share price surges ahead
The Treasury Wine share price has turned its fortunes around in the past month after a tough start to the year. The wine giant’s share price fell nearly 15% between market close on 31 December 2021 and 15 February 2022 before picking up again.
On 16 February, Treasury Wine shares surged nearly 12% on the back of the company’s financial results. Despite a 7.5% drop in net profit and a 6.7% fall in EBITS, the company expressed optimism on its future outlook.
Commenting on this future agenda, chief executive officer Tim Ford said:
We have great confidence that by leveraging the unique strengths of our business – our people, our brands and our asset base – we are well placed to capitalise on the significant opportunities across the global markets in which we operate.
Treasury Wines shares dropped 2.74% on March 2. This was ex-dividend day for the company, as my Foolish colleague Aaron reported. The board maintained a fully-franked interim dividend of 15 cents per share. This will be paid on 1 April.
Morgans recently recommended Treasury Wine as an “add” with a $13.93 price target. That’s 19% more than the current share price.
The broker said:
The foundations are now in place for TWE to deliver strong double digit 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.
Share price snapshot
The Treasury Wine Estates share price has leapt nearly 5% in the past year, although it is down nearly 6% year to date.
For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned around 5.5% in the past year.
Treasury Wine has a market capitalisation of about $8.4 billion based on its current share price.
The post Why has the Treasury Wine (ASX:TWE) share price surged 10% in a month? appeared first on The Motley Fool Australia.
Should you invest $1,000 in Treasury Wine right now?
Before you consider Treasury Wine , you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Treasury Wine wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of January 13th 2022
More reading
- Broker names 3 of the best ASX 200 shares to buy in March
- Here’s why the Treasury Wine (ASX:TWE) share price is sliding today
- Cheers! Broker tips 20% upside for the Treasury Wine (ASX:TWE) share price
- Why Treasury (ASX:TWE) shares could be a hidden dividend trove
- 3 of the best results on the ASX 200 last week
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 Bruce Jackson.
from The Motley Fool Australia https://ift.tt/KVucslv
Leave a Reply