One of the worst performing blue-chips on the market today has been the Treasury Wine Estates Ltd (ASX: TWE) share price.
In afternoon trade the wine company's shares are down 4% to $15.27.
Why are its shares lower today?
With no news out of Treasury Wine Estates, today's decline is likely to be attributable to a broker note out of Credit Suisse.
According to the note, analysts at the investment bank have downgraded its shares to an underperform rating with a price target of $14.15.
This price target implies potential downside of approximately 7% from the current share price.
Although the broker is optimistic on Treasury Wine Estates' strong growth prospects, it believes its shares are looking a touch expensive now in comparison to its global peers.
Credit Suisse expects the wine company to deliver earnings per share of approximately 45.5 cents in FY 2018, pricing its shares at around 33x forward earnings.
Should you sell?
I wouldn't be in a rush to sell. Credit Suisse's full-year estimate is in-line with the market consensus, which implies annual earnings growth of approximately 25%.
I don't believe 33x earnings is too demanding for this level of growth, especially given its long-term growth potential thanks to growing demand for premium wines in China and North America.
All in all, I think Treasury Wine Estates is one of the better buy and hold investment options on the market alongside Aristocrat Leisure Limited (ASX: ALL) and Altium Limited (ASX: ALU).
