William Blair analyst Phillip Blee has maintained their bullish stance on YETI stock, giving a Buy rating on August 4.
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Phillip Blee has given his Buy rating due to a combination of factors that highlight Yeti Holdings’ financial resilience and potential for growth. Despite a decline in sales, which fell by 3.8% and did not meet market expectations, Yeti’s gross margin and earnings per share (EPS) surpassed consensus estimates. The gross margin was notably higher than anticipated, reaching 57.8%, and the EBIT margin also exceeded expectations, indicating strong operational efficiency.
Furthermore, Yeti’s direct sales showed growth, particularly in the coolers and bags segment, and international sales, although below the trailing twelve-month average, still increased by 2%. The company’s ability to outperform in terms of profitability metrics, along with strategic share repurchases, suggests a solid financial foundation and potential for future value creation, which supports the Buy recommendation.
In another report released on August 4, Piper Sandler also maintained a Buy rating on the stock with a $36.00 price target.