Analysts at Jefferies anticipate a significant positive outcome for Treasury Wine Estates (ASX:TWE) following the proposed removal of Chinese tariffs.

The Australian leading winemaker announced on Tuesday that China’s Ministry of Commerce has prepared a preliminary proposal to eliminate tariffs on Australian wine.

While this interim decision on tariff removal is not yet definitive, Jefferies believes the final determination in the coming weeks is unlikely to deviate.

The brokerage added that the removal of tariffs would bolster growth as supply is established, facilitate pricing power, and improve earnings predictability for Treasury Wine Estates.

Among analysts, 12 out of 15 rate the stock as ‘buy’ or higher, with two maintaining a ‘hold’ stance and one recommending ‘sell’.

Their median price target is A$13.10, according to LSEG data.

Based on the last closing, the stock has seen a 13.9% increase YTD.

Treasury Wine Estates (ASX:TWE) is regarded as Australia’s foremost winemaker.