Duckhorn Portfolio price target lowered to $11 from $12.50 at Citi

Citi analyst Alexandra Davis lowered the firm’s price target on Duckhorn Portfolio to $11 from $12.50 and keeps a Buy rating on the shares. Duckhorn reported Q2 adjusted EPS of 18c, which was in line with both the firm’s estimate and consensus. Relative to Citi’s forecasts, Duckhorn reported weaker-than-expected net sales growth and higher-than-expected interest expense, which was offset by a stronger-than-expected gross margin. Overall, while the results fell short of expectations, Citi was encouraged by the company’s optimism that growth will accelerate in the second half of the year and commentary from management that the wine industry in Duckhorn’s price category continues to grow.