John Kernan, an analyst from TD Cowen, maintained the Hold rating on Yeti Holdings. The associated price target was raised to $33.00.
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John Kernan has given his Hold rating due to a combination of factors impacting Yeti Holdings. The company’s sales have shown a decline, particularly in the second quarter, and the guidance for the third quarter suggests flat performance, which puts pressure on the expected acceleration in the fourth quarter. The drinkware segment and international markets are areas of concern, although the additional 53rd week in the fiscal year could provide some relief.
Furthermore, while there is some optimism due to relief on tariffs from China, which has led to an increase in the earnings per share forecast for fiscal year 2025, there remains caution about potential tariff impacts in fiscal year 2026. The company’s North American market faces uncertainties in innovation and demand, and inventory constraints have affected the drinkware category. Despite these challenges, there are selective price increases and lower product costs that have slightly improved gross margins, but overall, the outlook remains cautious.
According to TipRanks, Kernan is a 5-star analyst with an average return of 9.8% and a 54.53% success rate. Kernan covers the Consumer Cyclical sector, focusing on stocks such as Deckers Outdoor, Dick’s Sporting Goods, and Lululemon Athletica.