09:46 AM EDT, 10/04/2024 (MT Newswires) -- Duckhorn Portfolio's ( NAPA ) fiscal Q4 financial results may reflect the broader weakness in the alcoholic beverage category, RBC Capital Markets said in a note Friday.

"[Duckhorn] remains a share gainer in luxury wine, but near-term macroeconomic, wine category, broader beverage alcohol, and distributor changeover dynamics are pressuring the business [mainly top-line]," RBC said.

The investment firm said it's "conservative" on top-line expectations for fiscal Q4, while also seeing some downside to market expectations for the company's fiscal 2025 outlook.

"That said, profitability should be in a better place as the more favorable terms with new distributors start to flow through the P&L and [Duckhorn] realizes synergies from the Sonoma-Cutrer deal," the note said.

RBC has an outperform rating on Duckhorn and $11 price target.

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