The Treasury Wine Estates Ltd (ASX: TWE) share price is pushing higher again on Wednesday.
In afternoon trade, the wine giant's shares are up 1% to $11.99.
This means the Treasury Wine share price is now up 25% since the start of the year.
Where next for the Treasury Wine share price?
The good news for investors is that the Treasury Wine share price could still have room to run higher.
That's the view of the team at Morgans, which have recently retained their add trading and $14.01 price target on the company's shares.
Based on the current Treasury Wine share price, this suggests there's still almost 17% upside over the next 12 months.
Why is the broker bullish?
According to the note, the broker felt that Treasury Wine's FY 2021 results last month were commendable.
Morgans commented: "Given the number of external headwinds TWE faced in FY21, we think its result was commendable, with many areas across the business beating expectations."
And while it acknowledges that no guidance was given and COVID-19 is creating uncertainty, the broker remains positive on its outlook.
This is particularly the case for the longer term, which Morgans highlights should be supported by sustainable top line growth and falling costs.
It said: "We forecast double digit EBITS growth in FY23 and FY24 from materially lower COGS, a full COVID recovery, benefits from its new operating model and Penfolds reallocation strategy."
What else?
In addition, the broker was pleased with the company's restructuring. It believes the restructuring leaves the company well placed for growth and the Treasury Wine share price undervalued on a sum of the parts (SOTP) basis.
Morgans explained: "TWE's new divisional operating model is now in place and is aimed at maximising the benefits of separate focus across its brand portfolios, rather than regions. We think its new structure is essentially trying to create the benefits of a demerger without actually demerging. TWE is now better positioned to take advantage of previously untapped growth opportunities across the globe, including M&A."
"The new divisions allow the market to properly value the Penfolds brand and in our view, proves that the SOTP is worth more than the whole. We maintain an Add rating," it added.
