2245 GMT [Dow Jones]--Given headwinds in both China and the U.S., Barrenjoey research analysts are unconvinced that Aussie-based vintner Treasury Wine can hit its earnings guidance after the departure of its CEO last week. A weak economic situation in China, combined with U.S. tariffs and austerity measures, likely means that growth in Treasury's key high-end wine brand Penfolds will slow in FY 2026. They also say the company's Americas business continues to underperform in a weak wine market. They downgrade to neutral from overweight and cut their target share price to A$9.50 from A$12.00. "Put simply we think the existing earnings guidance is unrealistic given the considerable external pressures on the business," the Barrenjoey analysts tell clients in a note. (mike.cherney@wsj.com)

(END) Dow Jones Newswires

May 21, 2025 18:49 ET (22:49 GMT)

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