RBC Capital analysts lowered the price target on The Duckhorn Portfolio, Inc. (NAPA) to $11.00 (from $14.00) while maintaining an Outperform rating.
The analysts comment "Given the company's pre-announcement, we do not expect any surprises on the quarter. However, a combination of a weak May and expected disruption from changes to the company's wholesaler network could create further downward pressure to organic top-line expectations. We expect some contribution from the Sonoma-Cutrer acquisition and likely an EPS boost from the company's distribution change over (due to favorable terms negotiated as part of the transition). Longterm, we worry about new LDA recruitment into NAPA's portfolio. Our PT moves to $11 from $14, but continue to rate NAPA Outperform given attractive valuation and outperformance vs peers."