0341 GMT - Treasury Wine Estates' recovery of inventory from its former California supplier doesn't seem to fill Jefferies analysts with confidence. Analysts Michael Simotas and Naveed Fazal Bawa tell clients in a note that repurchasing previously sold inventory is never positive, especially at the original sale price, as the Australian producer is doing. They point out that the subsequent sale of this repurchased inventory to a new California distributor will be at zero margin and effectively replace the profitable sale of new inventory. This will dilute Treasury Wine's second-half margins, they add. Jefferies has a hold rating and A$5.20 target price on the stock, which is up 4.4% at A$5.395. (stuart.condie@wsj.com)

(END) Dow Jones Newswires

February 09, 2026 22:41 ET (03:41 GMT)

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