The Treasury Wine Estates Ltd (ASX: TWE) share price is pushing higher on Thursday.
At the time of writing, the wine giant's shares are up over 0.5% to $12.01.
Why is the Treasury Wine share price lifting?
As well as getting a boost from a rebounding share market, there has been some news out of the company that may have gone down well with investors.
According to the release, Treasury Wine is integrating its Global Revenue Growth (GRG) function into its Treasury Premium Brands (TPB) Division.
Management notes that this is a move to unlock growth opportunities for its priority premium brands, strengthen innovation, deepen engagement with consumers and customer partners, and increase operating efficiencies within the Premium business.
GRG was established last year under the leadership of Angus Lilley, who is the company's global chief revenue growth officer. It is responsible for driving enterprise-wide revenue opportunities, including growth plans for current and future global brands, enterprise-wide innovation development, and enhancing consumer understanding across Treasury Wine.
Treasury Wine's CEO, Tim Ford, believes that bringing the GRG team together with TPB will unlock future opportunities for the strong consumer brands within the Premium business. He commented:
When you consider our Premium portfolio, this is a unique offering with an unrivalled global footprint and brands that resonate strongly with consumers. Integrating our GRG capabilities within TPB, will enhance our ability to strengthen these brands, foster cutting-edge innovation and deepen our engagement with consumers and customer partners.
As part of the change, Peter Neilson, who is managing director of TPB, will leave Treasury Wine after 12 years with the business to pursue new career opportunities. Angus Lilley will assume the position of managing director of TPB. Ford adds:
We thank Peter for his significant contributions made to TWE during his time. His focused leadership has resulted in a robust portfolio of brands and strong market positions for TWE, and the TPB team to build on.
Should you invest?
Analysts at Goldman Sachs think the Treasury Wine share price is good value at current levels.
Last week, the broker reaffirmed its buy rating and $13.40 price target on the company's shares. It said:
Our Buy rating of TWE is premised on accelerating double-digit EPS growth in FY24-26e driven by 1) continued global expansion of Penfolds especially post the removal of China import tariffs on Australian wine; our recent channel checks suggest positive reception to the returning Australian sourced Penfolds and we expect 50pct pre-tariff recovery by 2027; and 2) #1 luxury wine company in the US with recent acquisitions of Frank Family Vineyards and DAOU which have been growth and margin accretive, combined with a stable portfolio of Premium Brands. TWE is trading modestly below 5-year P/E average.
