Citi says potential tariffs on EU wines could benefit Australia's Treasury Wine Estates

Citi suggests U.S. President Donald Trump's proposed 200% tariff on EU wine imports to the U.S. could boost Treasury Wine Estates' TWE.AX Americas sales

Brokerage expects more than 80% of TWE's sales in the Americas to be from U.S.-produced wines, with the remaining sourced from Australia and New Zealand

Citi believes the tariffs, if passed on to consumers, could lead to a switch towards non-EU wines and potentially less advertising from EU wine companies

However, brokerage flags that tariffs could harm distributors' financial health, potentially affecting their ability to represent all wines, including non-tariff ones like TWE's

Citi also warns that European wine producers may respond to the tariffs by increasing their focus on other markets like China, potentially offsetting TWE's expected gains

Citi rates the stock as "buy" at a target price of A$13.85/share

Five of 16 analysts rate the stock "buy" or higher, nine as "hold" and two as "sell"; their mean PT is A$28.26 – LSEG data

Stock down 10.9% this year as of the last trading day