Jefferies, the brokerage, asserts that Treasury Wine (ASX:TWE) is more favourably positioned than its American competitor, Constellation Brands, due to its higher average price point.

The analysts believe the company has an edge because its weakness lies in lower-priced wines, while their luxury wines still manifest good performance.

The brokerage set a price target of A$13.50 for Treasury Wine, rating it as a ‘buy’.

It is worth noting that the stock of Treasury Wine is down by 13.7% year-to-date as of the latest closing.

Among 16 analysts, eleven rate the company as ‘buy’ or higher, two suggest ‘hold’, and three advice ‘sell’ or below with a median price target of A$13.40.

Treasury Wine is an Australia-based company that possesses a more premium portfolio in the U.S than Constellation Brands.