Duckhorn Portfolio upgraded to Overweight at Barclays after pullback

Barclays upgraded Duckhorn Portfolio to Overweight from Equal Weight with a $17 price target. While the firm has "felt good about the fundamentals" since it initiated coverage in April 2021 following the company’s IPO, the stock’s "rich valuation" compared to alcohol peers had previously kept it on the sidelines. However, the stock declined nearly 30% in 2022 and shares are down another 9.5% year-to-date even though "the quality business performance is still very much intact," the analyst tells investors. Barclays now sees the risk-reward proposition skewing to the upside from current levels given its view that Duckhorn’s roughly 11% calendar 2023 organic sales growth and 12% EPS growth view "could well prove conservative."