UBS Reiterates Neutral Rating on Yeti Holdings Inc. (YETI)

UBS analyst Peter Grom reiterated a Neutral rating and $35.00 price target on Yeti Holdings Inc. (NYSE: YETI).

The analyst commented, "YETI delivered a 2Q EPS beat, as weaker top line growth was more than offset by stronger GM/OPM. The company also lowered its net sales growth outlook for the year, citing ongoing softness and a slower-than-expected recovery in the U.S Drinkware segment. Despite the bottom line beat, we were not surprised to see shares finish the day down (-10% vs. +0.8% XLP), which we believe reflects ongoing concerns around the company's top line trajectory. While margins benefited this quarter from lower-than-expected tariffs, management emphasized that tariffs remain a key area of uncertainty and reiterated their focus on continued cost efficiencies/mitigation efforts within the company's supply chain networks, with a target of achieving <5% of COGS on goods sourced from China by year-end. With expectations now reset to reflect the current macro/demand backdrop, we believe the focus now shifts to execution, particularly restoring top line momentum. Despite an attractive valuation (~15x vs. 5-yr average of ~20x), we think investors are likely to wait for improved visibility on underlying trends and greater confidence that mitigation efforts are effectively taking hold before becoming constructive."

For an analyst ratings summary and ratings history on Yeti Holdings Inc. click here. For more ratings news on Yeti Holdings Inc. click here.

Shares of Yeti Holdings Inc. closed at $32.66 yesterday.

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