18:39 EDT [Dow Jones]–The earnings outlook for Treasury Wine Estates (TWE.AU) is attractive and improving, but that comes at a price, UBS points out. The wine producer released underlying earnings guidance for the 2016 financial year, which the brokerage says was in line with the consensus market expectation. It also announced the sale of its U.S. commercial business for an undisclosed amount. UBS pencils in earnings of A$339 million for the year, the upper end of Treasury’s guidance. It reckons Treasury is one of the few consumer stocks it covers that is able to deliver double-digit compound annual earnings growth over the coming three years. And the continued consolidation of its portfolio is a positive. However, it remains neutral on the stock, given it trades at about 22 times expected FY17 earnings and at a 36% premium to comparable defensive stocks. (robb.stewart[a]wsj.com; Twitter: [a]RobbMStewart)
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