Vintage Wine Estates: Momentum In The Premium Segment Confirms The Bullish Case

BOOX Research
20.33K Followers

Summary

  • Vintage Wine Estates reported its first quarterly result as a public company, highlighted by strong sales momentum for its premium wines.
  • A wildfire in Northern California disrupted production at some key wineries forcing a one-off inventory adjustment which pressured earnings.
  • Management expects continued growth momentum while the launch of a new bottling facility is set to drive margins higher supporting a positive long-term outlook.
  • We are bullish on the stock, which benefits from several underlying tailwinds and trades at an attractive valuation.

friends doing a wine tasting

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Vintage Wine Estates (VWE) is a U.S. wine producer with a collection of more than 50 brands in a portfolio that has grown through a series of acquisitions in the past 2 decades. The stock became publicly traded this past June

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This article was written by

20.33K Followers
BOOX Research run by Dan Victor, CFA specializes in covering small-caps and under-the-radar ideas. Dan brings more than 15 years of experience in financial services across multiple roles in research, investment management, and trading. Dan is also the winner of Seeking Alpha's 2023 stock market prediction contest-- beating out a field of 40 analysts by correctly forecasting the S&P 500's 24% gain that year. https://seekingalpha.com/article/4660791-2023-market-prediction-contest-winners

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in VWE over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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