The best performer on the main index yesterday was Treasury Wine (TWE) which rallied over 17% following a better than feared half-year result and medium term outlook. As expected revenue declined 23% with reduced shipments to China as the company toils with anti-dumping accusations. However importantly even during these tough trading conditions TWE was able to reduce its debt by over $400m.
This was a classic case of pessimism going too far and an okay result leading to a healthy pop in the stock which we can see following through short-term.
MM is bullish TWE with an initial target ~$13
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