This report is an updated version of the report published on 6 November 2023 at 3:55 PM AEDT.

Company Overview: Treasury Wine Estates Limited (ASX: TWE) is involved in grapes production & sourcing, wine production, marketing, and distribution. Business segments of the company include Australia and New Zealand (ANZ), Americas, Asia, Europe, Middle East, and Africa (EMEA). GrainCorp Limited (ASX: GNC) is an Australia-based agribusiness, which operates via two segments: Processing and Agribusiness. The company caters to over 350 clients in more than 50 countries.  Kalkine’s Market Event Report covers the Investment Summary, Event Summary, Data Insights & Analysis, Key Financial Metrics, Risks, Outlook, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

Investment Summary

Event Highlights

Data Insights and Analysis

Key Drivers versus Key Challenges

According to the Household Spending Index data, two ASX stocks are identified to showcase the momentum.

(1) Treasury Wine Estates Limited (ASX: TWE)

(Recommendation: ‘Buy’ at AUD 11.375, Potential Upside: Low Double-Digit)

(M-cap: AUD 7.96bn; Annual Dividend Yield: 3.17%)

The stock has witnessed a decline of ~1.023% in last one month, and over the last six months, it dipped by ~13.47%. The stock has a 52-week low and 52-week high of AUD 10.471 and AUD 14.687, respectively and is currently trading below the 52-week high-low average. TWE was last covered in a report dated ’31 July 2023’.

(2) GrainCorp Limited (ASX: GNC)

(Recommendation: ‘Hold’ at AUD 7.200; Potential Upside: Low Double-Digit)

(M-cap: AUD 1.60bn; Annual Dividend Yield: 7.56%)

The stock has witnessed a surge of ~4.01% in last six month, and over the last one year, it edged down by ~9.38%. The stock has a 52-week low and 52-week high of AUD 6.680 and AUD 8.500, respectively and is currently trading below the 52-week high-low average. GNC was last covered in a report dated ’10 October 2023’.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 6 November 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual’s appetite for upside potential, risks, holding duration, and any previous holdings. An ‘Exit’ from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

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