Treasury Wine Estates' December-half result failed to impress Ord Minnett, due to softer than expected earnings from Penfolds and Treasuries America and the broker doubts a June-half recovery will materialise given the December half is seasonally stronger.

Given most of the company's are sourced from overseas, the broker expects franking credits to be used up faster than they are replaced in years to come.

Ord Minnett lowers its FY23 earnings (EBIT) forecast -4%.

Lighten rating and $11.50 target price retained.

Note: Ord Minnett has transitioned to whitelabelling Morningstar research. Prior to this, the last entry in the FNArena database in August was Hold rating and $13 target price. EPS and DPS forecasts are similarly affected.

Sector: Food, Beverage & Tobacco.

Target price is $11.50.Current Price is $13.75. Difference: ($2.25) - (brackets indicate current price is over target). If TWE meets the Ord Minnett target it will return approximately -20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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