Does this broker prefer Treasury Wine or A2 Milk shares?

Consumer staples shares The a2 Milk Co Ltd (ASX: A2M) and Treasury Wine Estates Ltd (ASX: TWE) have had a very different year so far. 

Treasury Wine Estates has seen its share price fall almost 30% since January, while a2 Milk Co shares have risen 24.48%.

For context, the The S&P/ASX 200 Consumer Staples index is up roughly 2% in that same span. 

Both these ASX 200 listed companies are in the top five largest by market capitalisation in the consumer staples sector. 

Broker Bell Potter indicates there is upside in store for one of these companies. 

Lets see what the broker had to say. 

The a2 Milk Co Ltd (ASX: A2M)

A2 Milk Company Ltd is a fresh milk and infant formula company that sources, produces and supplies a2 brand of milk and milk-related products in Australia and globally.

Its year to date has been strong, with shares rising 24.48% in that span. 

However despite the rise, broker Bell Potter believes its current share price of $7.22 is now close to fair value. 

The broker currently has a "hold" recommendation and target price of $7.85. 

This indicates an upside of roughly 8.73%. 

Treasury Wine Estates Ltd (ASX: TWE)

Treasury Wine Estates is an Australia-based global wine company. 

The company is among the world's top five wine producers and owns a portfolio of more than 70 brands. 

So far this year its share price has fallen 29.43%. 

At the time of writing shares are trading at $7.96. 

However, broker Bell Potter's price target of $10.23 indicates it could now be significantly undervalued. 

Based on this price target, there is an upside of 28.51%. 

Despite a rough year to date, the broker said management indicated that the reopening of China for Australian wines has presented significant opportunities, alleviating previous challenges faced during tariff impositions.

Management emphasised a strong consumer demand for luxury wines, particularly in Asia. The increasing reallocation of wine shipments and ongoing brand activations are seen as positive indicators.

Morgans also has a $10.25 price target on its shares.