The Treasury Wine Estates Ltd (ASX: TWE) share price has continued its slide on Friday.
This appears to have been driven by a note out of Citi, which revealed that its analysts have downgraded the wine giant's shares to a sell rating with a $10.25 price target.
This latest bout of selling means the company's shares have just hit a new 52-week low of $10.74.
Does this make it a good time to buy this ASX dividend share? Let's find out.
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Is it time to buy this ASX dividend share?
While the market may have fallen out of love with Treasury Wine this year, a number of analysts remain very positive about the company.
For example, the team at Goldman Sachs recently reiterated its buy rating and $14.20 price target on its shares. Based on its current share price, this implies a potential upside of more than 30% for investors over the next 12 months.
In addition, Goldman Sachs is expecting some attractive dividend yields from this ASX share.
It has pencilled in dividends of 35 cents per share in FY 2023, 39 cents per share in FY 2024, and then 44 cents per share in FY 2025. This equates to yields of approximately 3.2%, 3.6%, and 4%, respectively.
Goldman believes the recent weakness has created an opportunity for investors to buy a high-quality company and a very attractive price. It said:
The current sell down represents a good opportunity to further accumulate a stock that has a long-term moat and global scalable upside.
'Market is being too pessimistic'
It isn't just Goldman Sachs that is bullish. Our very own expert analysts also remain positive on this ASX dividend share.
Commenting today, Motley Fool Australia analyst Benny Ou said:
Treasury Wine Estates stands as a leading global wine business, but it has faced headwinds in recent times due to softer demand and dimmer outlook for its commercial wine segment (wines sold for under $10 per bottle).
As a result, this has prompted the company to lower its FY23 earnings guidance, leading to a decline in its share price. In response, Treasury Wine is currently conducting a review of its commercial wine operations.
Despite these difficulties, Treasury Wine has made substantial progress in evolving its portfolio towards luxury and premium wines as part of a 'premiumisation' strategy.
Additionally, the company has been diversifying its global distribution footprint by expanding into other growing export markets. In our view, the market is being too pessimistic and is undervaluing the strength of Treasury's key brands and its potential for long-term outperformance.
