YETI stock is still attracting buyers on January 21 2020, after analysts rosy comments over the past month.
On December 27, 2019, after visiting the company’s new Chicago store, Piper Jaffray analyst Peter Keith reiterates an Overweight rating on Yeti Holdings with a $41 price target. The analyst says he likes how integrated the Yeti brand could be in an urban environment. Yeti could have numerous metropolitan stores across the country in the years to come, Keith tells investors in a research note. Further, the elimination of List 4B tariffs could provide an additional 100-120 basis points of gross margin opportunity in 2020, which equates to 9c-10c of earrings per share, adds the analyst, who notes this is currently not factored into his model. He believes the Yeti’s 2020 setup is “looking strong” without the List 4B tariffs. Peter Keith says that Yeti Holdings is a favorite SMID cap idea for both Q4 and 2020. The analyst is intrigued with Yeti’s ongoing gross margin upside opportunity and he believes consensus estimates for Q4 and 2020 are beatable. He sees earnings upside potential and a reasonable valuation. Keith recommends buying the shares at current levels with an Overweight rating and $41 price target.
On December 18, 2019, Jefferies analyst Randal Konik said his checks reveal that Yeti (YETI) products are now being sold by Lowe’s (LOW) online and in at least 29 stores in 6 states, with more store distribution to come in February. He sees this as a sign of Yeti’s increasing awareness, distribution, and brand love. The analyst, who sees the total addressable market widening for Yeti, keeps a Buy rating and $47 price target on the shares.
On December 17, 2019, Roth Capital analyst Dave King initiated coverage of Yeti with a Buy rating and $37 price target. Yeti is creating market share and successfully transitioning to a leading lifestyle brand, while its drinkware business is helping to drive a trend toward sustainability, King tells investors in a research note. He adds that margins are benefiting from the company’s premium price points and direct-to-consumer and drinkware category growth that should more than offset near-term tariff pressures.
On December 5, 2019, Goldman Sachs analyst Alexandra Walvis upgraded Yeti Holdings (YETI) to Buy from Neutral with a price target of $37, up from $35. The analyst increased her estimates to embed upside from the company’s new distribution relationship with Lowe’s (LOW). Yeti’s brand management is “best in class,” says the analyst, who’s optimistic about its growth opportunity across categories and geographies. She does not believe this growth profile is embedded in Yeti’s current valuation. The recently announced expansion into Lowe’s will allow Yeti to reach new customers and drive material sales upside, Walvis tells investors in a research note. She believes the stock’s risk/reward is now skewed to the upside.