Analysts' Top Consumer Goods Picks: Treasury Wine Estates Limited (TSRYF), Procter & Gamble (PG)
There's a lot to be optimistic about in the Consumer Goods sector as 2 analysts just weighed in on Treasury Wine Estates Limited (TSRYF – Research Report) and Procter & Gamble (PG – Research Report) with bullish sentiments.
Confident Investing Starts Here:
Treasury Wine Estates Limited (TSRYF)
In a report released today, Belinda Moore from Morgans maintained a Buy rating on Treasury Wine Estates Limited, with a price target of A$11.06. The company's shares closed last Monday at $4.90.
According to TipRanks.com, Moore is a 3-star analyst with an average return of 5.2% and a 55.3% success rate. Moore covers the Basic Materials sector, focusing on stocks such as Nufarm Limited, Orica Limited, and Incitec Pivot.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Treasury Wine Estates Limited with a $7.70 average price target, implying a 57.1% upside from current levels. In a report released yesterday, Goldman Sachs also maintained a Buy rating on the stock with a A$13.20 price target.
Procter & Gamble (PG)
Evercore ISI analyst Robert Ottenstein maintained a Buy rating on Procter & Gamble yesterday and set a price target of $190.00. The company's shares closed last Tuesday at $166.85.
According to TipRanks.com, Ottenstein is a 3-star analyst with an average return of 1.1% and a 54.7% success rate. Ottenstein covers the Consumer Goods sector, focusing on stocks such as Coca-Cola Europacific Partners, Anheuser-Busch Inbev Sa, and Constellation Brands.
Currently, the analyst consensus on Procter & Gamble is a Moderate Buy with an average price target of $171.56.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
11 hours ago
- Business Insider
Analysts Offer Insights on Technology Companies: Nextdc Limited (OtherNXDCF) and Intuit (INTU)
There's a lot to be optimistic about in the Technology sector as 2 analysts just weighed in on Nextdc Limited (NXDCF – Research Report) and Intuit (INTU – Research Report) with bullish sentiments. Confident Investing Starts Here: Nextdc Limited (NXDCF) In a report released today, Tim Plumbe from UBS maintained a Buy rating on Nextdc Limited, with a price target of A$20.20. The company's shares closed last Tuesday at $8.91, close to its 52-week low of $8.88. According to Plumbe is a 2-star analyst with an average return of 0.2% and a 41.7% success rate. Plumbe covers the NA sector, focusing on stocks such as Corporate Travel Management Limited, Flight Centre Travel Group Limited, and WEB Travel Group. Currently, the analyst consensus on Nextdc Limited is a Strong Buy with an average price target of $12.16, a 36.5% upside from current levels. In a report issued on May 27, Citi also maintained a Buy rating on the stock with a A$18.70 price target. Intuit (INTU) Jefferies analyst Brent Thill maintained a Buy rating on Intuit yesterday and set a price target of $850.00. The company's shares closed last Tuesday at $762.10. According to Thill is a 5-star analyst with an average return of 13.9% and a 65.7% success rate. Thill covers the Technology sector, focusing on stocks such as International Business Machines, CoreWeave, Inc. Class A, and Palantir Technologies. The word on The Street in general, suggests a Strong Buy analyst consensus rating for Intuit with a $814.71 average price target, representing a 6.9% upside. In a report issued on May 28, Scotiabank also maintained a Buy rating on the stock with a $800.00 price target.
Business Insider
15 hours ago
- Business Insider
Sam Altman says the energy needed for an average ChatGPT query can power a lightbulb for a few minutes
Altman was writing about the impact that AI tools will have on the future in a blog post on Tuesday when he referenced the energy and resources consumed by OpenAI's chatbot, ChatGPT. "People are often curious about how much energy a ChatGPT query uses; the average query uses about 0.34 watt-hours, about what an oven would use in a little over one second, or a high-efficiency lightbulb would use in a couple of minutes," Altman wrote. "It also uses about 0.000085 gallons of water; roughly one-fifteenth of a teaspoon," he continued. Altman wrote that he expects energy to "become wildly abundant" in the 2030s. Energy, along with the limitations of human intelligence, have been "fundamental limiters on human progress for a long time," Altman added. "As data center production gets automated, the cost of intelligence should eventually converge to near the cost of electricity," he wrote. OpenAI did not respond to a request for comment from Business Insider. This is not the first time Altman has predicted that AI will become cheaper to use. In February, Altman wrote on his blog that the cost of using AI will drop by 10 times every year. "You can see this in the token cost from GPT-4 in early 2023 to GPT-4o in mid-2024, where the price per token dropped about 150x in that time period," Altman wrote. "Moore's law changed the world at 2x every 18 months; this is unbelievably stronger," he added. Tech companies hoping to dominate in AI have been considering using nuclear energy to power their data centers. In September, Microsoft signed a 20-year deal with Constellation Energy to reactivate one of the dormant nuclear plants located in Three Mile Island. In October, Google said it had struck a deal with Kairos Power, a nuclear energy company, to make three small modular nuclear reactors. The reactors, which will provide up to 500 megawatts of electricity, are set to be ready by 2035. Google's CEO, Sundar Pichai, said in an interview with Nikkei Asia published in October that the search giant wants to achieve net-zero emissions across its operations by 2030. He added that besides looking at nuclear energy, Google was considering solar energy.
Yahoo
18 hours ago
- Yahoo
Are Investors Undervaluing Treasury Wine Estates Limited (ASX:TWE) By 47%?
Using the 2 Stage Free Cash Flow to Equity, Treasury Wine Estates fair value estimate is AU$15.36 Treasury Wine Estates' AU$8.17 share price signals that it might be 47% undervalued Our fair value estimate is 38% higher than Treasury Wine Estates' analyst price target of AU$11.16 Does the June share price for Treasury Wine Estates Limited (ASX:TWE) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to today's value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. Don't get put off by the jargon, the math behind it is actually quite straightforward. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (A$, Millions) AU$472.8m AU$434.4m AU$498.0m AU$496.8m AU$500.5m AU$507.5m AU$517.0m AU$528.3m AU$541.1m AU$555.1m Growth Rate Estimate Source Analyst x4 Analyst x4 Analyst x3 Analyst x1 Est @ 0.74% Est @ 1.40% Est @ 1.87% Est @ 2.19% Est @ 2.42% Est @ 2.58% Present Value (A$, Millions) Discounted @ 6.4% AU$444 AU$384 AU$413 AU$387 AU$367 AU$350 AU$335 AU$321 AU$309 AU$298 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = AU$3.6b We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.9%. We discount the terminal cash flows to today's value at a cost of equity of 6.4%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = AU$555m× (1 + 2.9%) ÷ (6.4%– 2.9%) = AU$16b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= AU$16b÷ ( 1 + 6.4%)10= AU$8.9b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is AU$12b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Relative to the current share price of AU$8.2, the company appears quite good value at a 47% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Treasury Wine Estates as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 6.4%, which is based on a levered beta of 0.800. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for Treasury Wine Estates Strength Debt is not viewed as a risk. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Beverage market. Opportunity Annual earnings are forecast to grow faster than the Australian market. Trading below our estimate of fair value by more than 20%. Threat Dividends are not covered by earnings and cashflows. Annual revenue is forecast to grow slower than the Australian market. Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn't be the only metric you look at when researching a company. It's not possible to obtain a foolproof valuation with a DCF model. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. Can we work out why the company is trading at a discount to intrinsic value? For Treasury Wine Estates, there are three additional factors you should look at: Risks: Be aware that Treasury Wine Estates is showing 2 warning signs in our investment analysis , and 1 of those is a bit concerning... Future Earnings: How does TWE's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. Simply Wall St updates its DCF calculation for every Australian stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
