Yeti Holdings' Outlook Dims: Analyst Drops Rating Due To Macro Conditions And Stock Performance

Shares of Yeti Holdings Inc YETI were heading south in early trading on Monday.

While golf and retailers seem to be the “best way to play the leisure vehicle space,” the prospects of Yeti Holdings are limited by macro conditions and its price action, according to KeyBanc Capital Markets.

The Yeti Holdings Analyst: Noah Zatzkin downgraded the rating on Yeti Holdings from Sector Weight to Underweight, while keeping the price target unchanged at $34.

The Yeti Holdings Thesis: The company’s recent price action, macro pressures, intensifying competition, and high inventory levels pose risks to its performance in the fourth quarter and beyond, Zatzkin said in the downgrade note.

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“Golf is still good, but our concerns for YETI are mounting,” the analyst wrote, adding that the company may not return to double-digit annual growth soon.

He lowered the earnings estimates for fiscal 2023 and 2024 from $2.15 per share to $2.10 per share and from $2.65 per share to $2.50 per share, respectively, “given growth algo concerns (Stanley, macro, inventory, etc.).”

YETI Price Action: Shares of Yeti Holdings wre down 5.38% to $40.31 at the time of publication Monday.

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