TWE - Citi rates the stock as Sell
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The company continues to lose share in the Americas and Australian markets. Citi notes European volumes are rising but pricing is weak. Hence, upside risks to earnings from Asian growth is likely to be offset by the weakness in other regions.
The broker observes the stock's PE multiple is increasingly tied to Chinese demand growth more so than its US market recovery. Demand trends are strong in Asia but prices have declined. Overall, the broker suggests there is little room for any slowing in momentum.
Sell rating and $10.90 target maintained.
Sector: Food, Beverage & Tobacco.
Target price is $10.90.Current Price is $16.13. Difference: ($5.23) - (brackets indicate current price is over target). If TWE meets the Citi target it will return approximately -48% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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