Despite recent volatility, brokers are bullish on the Treasury Wine share price

There’s a potential 20% upside on the Treasury Wine share price, according to experts.

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A happy couple drinking red wine in a vineyard as the Treasury Wine share price rises today

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Key points

  • Treasury Wine Estates shares have toppled from a 52-week high last October
  • Despite that, analysts remain bullish on the stock 
  • In the past 12 months, the Treasury Wine share price has slipped about 12% into the red

The Treasury Wine Estates Ltd (ASX: TWE) share price has whipsawed in 2022, trading as high as $13.20 and as low as $10.54 in that time.

It has danced between $11 and $12 from March to May and it’s down 11.8% this year to date (below). It’s been trending down since 31 May and today, the Treasury Wine share price is $10.88 — down 0.37% for the day so far.

TradingView Chart

Analysts stacked on the buy side

Over the past 12 months, the number of buy calls on Treasury Wine has crept upwards. Currently, 58% of brokers covering the stock have it rated as a buy, according to Bloomberg data.

That’s crept up from 33% this time last year.

Another 37% have it rated a hold — that number reducing from roughly 46% a year ago. In terms of price targets, an Evans and Partners note from November 2021 lists a valuation for Treasury Wine of $14.60.

However, a June note from Credit Suisse has it valued at $13.50 per share. Jefferies valued it at $14.50 apiece earlier this month as well.

Macquarie and Goldman Sachs are both neutral at $12.55 and $11.90 respectively.

Those at Barrenjoey aren’t a fan. The team rates the Treasury Wine share price underweight on a $9.50 price objective in May. This is the only sell rating.

The consensus price target is $13.17 from this list. That suggests about a 20% potential upside.

Treasury Wine share price snapshot

In the past 12 months, Treasury Wine stock has slipped about 9.5% into the red. From its 52-week high, it has slipped 18%.

That means it must gain about 23% to return to its former highs. Moreover, there’s no telling how long this volatility will last.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs. The Motley Fool Australia has recommended Macquarie Group Limited and Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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