Analyst Stephen Grambling from Morgan Stanley maintained a Hold rating on Yeti Holdings and keeping the price target at $34.00.
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Stephen Grambling’s rating is based on a combination of factors that have influenced Yeti Holdings’ recent performance and future outlook. The company reported earnings per share that exceeded expectations, primarily due to improved gross margins driven by tariff reductions. However, this positive was somewhat offset by weaker sales figures, particularly in the cooler and equipment segments, which have seen a decline after several quarters of growth.
Despite the earnings beat and raised guidance, the market had already anticipated some of these improvements due to prior speculation around mergers and acquisitions and tariff relief. This anticipation has tempered enthusiasm, as the focus shifts to the ongoing challenges in certain product segments and the sustainability of demand for popular items like the YETI Camino Caryall Tote bag. Consequently, the valuation of Yeti Holdings is now closer to its historical averages, leading to a Hold rating as the positives are balanced by the uncertainties in sales growth and product demand.
YETI’s price has also changed moderately for the past six months – from $36.340 to $32.660, which is a -10.13% drop .