Duckhorn Faces Margin Challenges Despite Distribution Growth, Analyst Cites Macro Sensitivity
Portfolio Pulse from Nabaparna Bhattacharya
BMO Capital analyst Andrew Strelzik initiated coverage on The Duckhorn Portfolio, Inc. (NYSE:NAPA) with a Market Perform rating and a $14 price target. Despite the company's potential for long-term growth, Strelzik expects medium-term limitations due to consumer spending concerns and potential margin headwinds. The analyst expects NAPA's valuation to remain limited by macro uncertainty, but sees potential for multiple expansion over time. For FY23 and FY24, the analyst expects revenues of $402 million and $432 million, respectively.
September 05, 2023 | 6:42 pm
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The Duckhorn Portfolio, Inc. (NYSE:NAPA) is expected to face medium-term limitations due to consumer spending concerns and potential margin headwinds, according to BMO Capital analyst Andrew Strelzik. However, the company's long-term growth potential is recognized.
The analyst from BMO Capital has initiated coverage on NAPA with a Market Perform rating, indicating a neutral outlook. The company's shares are expected to face limitations in the medium term due to consumer spending concerns and potential margin headwinds. However, the analyst recognizes the company's potential for long-term growth and expects revenues of $402 million and $432 million for FY23 and FY24, respectively.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100