RBC Capital Markets upgraded The Duckhorn Portfolio (NYSE:NAPA) to an Outperform rating on its view the stock will outperform sector peers.
Analyst Nik Modi: "We see solid topline growth trends both in off-premise with distribution and share gains, and on-premise with the channel recovery and share gains. NAPA has also high exposure to higher-income consumers, which we expect will be less impacted by high-inflation. On the cost front, NAPA has high visibility given its exposure to grapes and the wine aging process, making the company less exposed to cost inflation vs. CPG peers."
NAPA traded as high as $18.54 earlier in the session vs. the post-IPO trading range of $16.16 to $25.25. RBC Capital Markets assigned a price target of $23 to the wineries stock.
RBC Capital Markets upgraded The Duckhorn Portfolio (NYSE:NAPA) to an Outperform rating on its view the stock will outperform sector peers.
Analyst Nik Modi: "We see solid topline growth trends both in off-premise with distribution and share gains, and on-premise with the channel recovery and share gains. NAPA has also high exposure to higher-income consumers, which we expect will be less impacted by high-inflation. On the cost front, NAPA has high visibility given its exposure to grapes and the wine aging process, making the company less exposed to cost inflation vs. CPG peers."
NAPA traded as high as $18.54 earlier in the session vs. the post-IPO trading range of $16.16 to $25.25. RBC Capital Markets assigned a price target of $23 to the wineries stock.