Duckhorn Portfolio ( NYSE: NAPA ) was downgraded to Neutral by JP Morgan Andrea Teixeira, as she anticipates disappointing full-year guidance for 2023.
She clarified that while the long-term prospects for the company are still promising, a near-term deceleration in luxury wine sales, a wealth effect negatively impacting its key customers, and adverse weather conditions in California as of late provide a bad setup into earnings. Teixeira said that the company’s relationship with TSG Consumer Partners “could keep a lid on shares.”
As such, Teixeira moved to Neutral from a prior Buy-equivalent rating and reduced her price target to $19 from $24. Shares declined 2.79% in premarket trading on Thursday.
Dig into the earnings expectations for Duckhorn on September 28 .
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JP Morgan downgrades Duckhorn Portfolio ahead of earnings