Treasury Wine Estates (ASX:TWE) underperformed slightly in value terms in the US wine category during the four-week period to July 11, although the results were better than in previous months, Jefferies said in a Wednesday note, citing Nielsen data.

While scan data highlights "significant recent improvement" for the company, this data can be volatile from month to month, so "we need to see a longer period before we can call it a trend," the investment firm said.

Treasury Wine Estates' brands declined 2.9% in value terms vs a 2.1% fall for the broader market on a year-over-year basis, marking the company's best print since May 2024, Jefferies said.

The data also indicates that Treasury Wine Estates' luxury portfolio grew 2.1%, reversing an 8.2% decline in the previous four-week period, with the company's promotional intensity increasing by more than the market in both value and volume terms, the equity research firm said.

Jefferies remains cautious on the company's US business given a requirement to work through material excess channel inventory, as well as continued US distributor disruption.

It maintained a hold rating on Treasury Wine Estates with a price target of AU$5.