With about 42% of its revenue and EBIT from the USA, TWE’s bottom line will get a boost from the pending reforms to the US tax code.
On the top line, TWE should be able to deduct interest payments on their USD dominated debt, which combined with accelerated depreciation, could boost NPAT by about 8%.
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From a technical perspective, we see scope for a move higher on a break of the $16.30 resistance level. As such, we would look to take profits on long positions at or near the $16.50 area.
Treasury Wine Estates
