0034 GMT - Treasury Wine Estates' path looks clearer to Morgan Stanley analysts, but they warn that the Australian vintner still needs to prove it can sustainably grow earnings. Treasury Wine's portfolio simplification and supply-chain rationalization make sense to the investment bank's analysts, who sound positive on its removal of excess capacity and investment behind fewer high-quality brands. However, they tell clients in a note that with inventory rebalancing ongoing in both the U.S. and China, fiscal 2027 will be one of transition. They say margins will be under pressure until the benefits of cost reduction and restructuring are realized. MS lifts its target price 4.9% to A$5.10 and maintains an equal-weight rating on the stock, which is flat at A$4.66. (stuart.condie@wsj.com)

(END) Dow Jones Newswires

June 04, 2026 20:34 ET (00:34 GMT)

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