Treasury Wine Estates Ltd shares surged 5.05% during intraday trading on Wednesday, as investors reacted to a reassuring analyst note regarding the company's limited exposure to a distributor wind-down.

The rally came after Jefferies issued a report stating that the impact from RNDC's wind down is expected to be modest. The brokerage highlighted that RNDC now distributes Treasury Wine Estates' products in only five states, down from more than 20 last year, following its exit from California. As a result, any potential claim against the winemaker is likely to be less than $1.6 million.

Jefferies also noted that other distributors, such as Breakthru, are performing better, while Reyes has shown strong interest in expanding its wine distribution business. Despite maintaining a hold rating and a price target of AU$5.00, the limited fallout from the RNDC situation appeared to alleviate investor concerns, fueling the stock's upward move.