Could the Treasury Wine (ASX:TWE) share price hit $14 by the end of 2021?

Is there still time to buy this wine company’s shares?

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A happy couple drinking red wine in a vineyard.

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The Treasury Wine Estates Ltd (ASX: TWE) share price is pushing higher on Wednesday.

At the time of writing, the wine company’s shares are up 1% to $11.88.

This means Treasury Wine’s shares are now up 24% since the start of the year.

Could the Treasury Wine share price reach $14 by the end of 2021?

The good news for shareholders is that one leading broker believes the Treasury Wine share price can climb even higher from here.

According to a note out of Morgans this week, its analysts have retained their add rating but trimmed their price target on its shares ever so slightly to $13.90.

Based on the current Treasury Wine share price, this implies potential upside of 17% for investors.

In addition, Morgans is forecasting a 29 cents per share fully franked dividend in FY 2022. If we add this into the equation, the total potential return stretches to approximately 19.5%.

All in all, it appears as though the team at Morgans see scope for the Treasury Wine share price to be trading around the $14.00 mark come the end of the year.

Why is the broker bullish?

Morgans notes that the company’s recent annual general meeting update revealed that COVID headwinds have been weighing on its sales. However, the broker wasn’t surprised by this and remains positive on the future.

It commented: “Unsurprisingly, COVID has continued to impact some of TWE’s key channels, particularly the higher margin ones. However, with key markets starting to reopen, we expect sales to improve from here. We also highlight that TWE is performing well in what it can control and in markets not impacted by COVID.”

Overall, Morgans believes the company is well placed for growth in the coming years and feels the Treasury Wine share price is trading at an attractive level.

The broker explained: “We believe that the strategies TWE has in place will deliver solid earnings growth over coming years. Recent share price weakness represents a great buying opportunity in this high quality company.”

“The stock has been oversold and is looking good value trading on an FY23 PE of 22.2x compared to its long-term average of 25x,” it concluded.

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Motley Fool contributor James Mickleboro 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 owns shares of and 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.

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