TWE closed up +4.3% on Monday as the feedback from Prime Minister Albanese’s visit to China became increasingly encouraging. The AFR led with China hails “new starting point – Albanese, Xi stabilise relations”, very different headlines to those created by Scott Morrisons’ less diplomatic approach to the world’s 2nd largest economy. China has offered to negotiate the removal of its tariffs on imports of Australian wine, which is great news for TWE looking forward, and if it wasn’t for the recent capital raise, at $10.80, to fund its acquisition of Californian luxury wine brand DAOU Vineyards, we believe the stock would already be significantly higher.
- We remain bullish on TWE with an initial target of $14, or +20% higher, and as shareholders, we have the opportunity to take up our rights at $10.80.
MM is bullish on TWE over the medium-term
Add To Hit List
