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.
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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.
