'Only positives to come': Is now the time to buy Treasury Wine shares?

Treasury Wine shares are leaping higher today.

| More on:
Smiling person with tattoos enjoying a glass of wine with a group of others.

Image Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Treasury Wine Estates Ltd (ASX: TWE) shares are up almost 3% in early trade on Monday.

Shares in the S&P/ASX 200 Index (ASX: XJO) global wine company closed on Friday trading for $11.77. At the time of writing, shares are swapping hands for $12.12 apiece.

For some context, the ASX 200 is down 0.6% at this same time.

Here's what's piquing ASX 200 investor interest today. And why now may still be an opportune time to snap up some Treasury Wine shares.

All eyes on China

Treasury Wine has faced some stiff headwinds since China slapped punitive tariffs on numerous Australian exports in 2020, including wine.

China implemented the punishing duties in the wake of the Aussie government's support for an international investigation into the origins of the COVID-19 pandemic.

Prior to imposing those tariffs, China represented Australia's biggest wine export market.

After almost four years, Treasury Wine shares are getting a welcome boost today on news that China may be ready to remove its wine duties.

Over the weekend, Prime Minister Anthony Albanese announced the suspension of Australia and China's trade dispute with the World Trade Organisation (WTO) after China agreed to an "expedited review" of the wine tariffs.

"We're very confident that this will result in, once again, Australian wine – a great product – being able to go to China free of the tariffs which have been imposed," Albanese said (quoted by The Canberra Times).

Albanese noted that one out of every four Aussie jobs was dependent on trade. He added that  "our most significant trading partner in terms of our exports is China".

How did Treasury Wine react?

In an ASX announcement this morning, Treasury Wine welcomed the news, noting that the tariff review was expected to take up to five months.

The company said it was "well placed to rebuild its business in China" if the punitive tariffs were removed. It cited a series of plans it would implement progressively over time. Treasury Wine stressed that its rebuilding plans for the Chinese market would not come at the expense of long-term growth opportunities in its other key markets.

Commenting on the news sending Treasury Wine shares sharply higher today, CEO Tim Ford said:

It's great to see an agreement for an expedited pathway forward to allow our Australian brands and wine to be sold in the Chinese market.

There are only positives to come out of a favourable review for the Chinese consumer, customers and the wine category, for the Australian wine industry and for TWE.

How have Treasury Wine shares been tracking?

Despite today's boost, Treasury Wine shares remain down 3% over the past 12 months.

Motley Fool contributor Bernd Struben 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 has recommended Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Consumer Staples & Discretionary Shares

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Consumer Staples & Discretionary Shares

After presenting at the 2025 Macquarie Conference, Macquarie tips 39% upside for this consumer discretionary stock

Is now the time to buy low on this penny stock?

Read more »

Couple look at a bottle of wine while trying to decide what to buy.
Consumer Staples & Discretionary Shares

Treasury Wine Estates shares down 21% this year amid resurgent China demand

Are Treasury Wine Estates shares a bargain?

Read more »

I young woman takes a bite out of a burrito n the street outside a Mexican fast-food establishment.
Consumer Staples & Discretionary Shares

Guzman Y Gomez shares are down 22% this year. Time to buy?

Should I buy the dip in Guzman Y Gomez shares?

Read more »

supermarket asx shares represented by shopping trolley in supermarket aisle
Dividend Investing

Should I buy Coles shares for their reliable passive income?

We take a look at Coles’ passive income credentials and the potential for share price gains.

Read more »

man looks at phone while disappointed
Consumer Staples & Discretionary Shares

Guess which ASX 300 stock is down 9% on guidance downgrade

Investors are rushing to the exits today. But why? Let's find out.

Read more »

Supermarket trolley with groceries going up the stairs with a rising red arrow.
Consumer Staples & Discretionary Shares

Woolworths shares have soared 18% since March. Here's how much upside Macquarie still expects

Having raced higher since March’s multi-year lows, just how high can Woolworths shares go?

Read more »

A customer and shopper at the checkout of a supermarket.
Consumer Staples & Discretionary Shares

Broker watch: Are Woolworths shares a buy?

Do analysts think this supermarket giant would be a good pick for investors? Let's find out.

Read more »

Supermarket trolley with groceries on top of a red pointing arrow.
Consumer Staples & Discretionary Shares

Up 31% in a year, just how much more upside does Macquarie tip for Coles shares?

Can Coles shares smash the ASX 200 returns again in the year ahead?

Read more »