TWE +5.27%: the wine producer and distributor is hosting an investor day at their newly acquired DAOU site in Pao Robles, California, hoping to alleviate some concerns that have followed the $US900m acquisition. In the detail, the company reaffirmed FY24 guidance of mid to high single-digit EBITS growth, broadly in line with consensus expectations of ~6.5% growth. There was downside risk priced in to the stock though given the challenges facing the US wine industry. Early signs suggest Treasury’s distribution model has helped drive growth since the acquisition was completed in December last year with plenty of additional revenue and cost synergies still to come out of DAOU.
MM is long and bullish TWE
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