** Treasury Wine Estates TWE.AX shares rise 0.8% to A$7.94, their highest level since June 25 and set for fourth consecutive session of gains

** Jefferies says U.S. wine trends remain difficult, echoing the Penfolds wine producer's recent commentary

** Brokerage acknowledges structural challenges, but forecasts cyclical improvement with observing modest growth in higher-priced wine segments

** Expects disruption from TWE's impending California distributor transition

** Highlights upside as stock trades near asset value, due to Penfolds brand strength

** Stock down ~30% YTD

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk;))