0609 GMT - Treasury Wine Estates' physical presence in China should enhance the perception of the Australian producer's Penfolds brand in the country and provide political capital, Jefferies analyst Michael Simotas says. The acquisition of a controlling stake in Ningxia Stone & Moon Winery is not financially material but will complement Treasury's existing third-party sourcing model to scale production of Penfolds in China, he tells clients in a note. Simotas also thinks that the recent discussion of stimulus in China could be positive for local demand. Jefferies has a buy rating and A$15.50 target price on the stock, which closed up 4% at A$11.95. (stuart.condie@wsj.com)
(END) Dow Jones Newswires
December 10, 2024 01:09 ET (06:09 GMT)
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