** Shares of winemaker Treasury Wine Estates TWE.AX advances as much as 1.3% to A$4.68 by noon in Sydney

** Jefferies flags TWE's ongoing U.S. market share losses, excess inventory and distributor disruption weighing on performance

** Says market research provider Nielsen's data shows the company "continues to lose share at all price points" despite a modest recovery in higher-end wines

** Jefferies highlights risks from a need to clear material excess channel inventory alongside continued disruption among distributors in key U.S. markets

** Notes TWE significantly underperforms the wider US wine market, with value sales down sharply and volumes declining faster than peers

** Adds, even the luxury segment lags, with TWE's premium brands weakening while the broader high-end category shows growth, signalling execution challenges

** Jefferies keeps stock at a "Hold" rating at a price target of A$5/shr

** YTD stock down ~11%