One analyst is overwhelmingly bullish on YETI Holdings, Inc. YETI's future prospects.
The Analyst
Jefferies analyst Randal Konik reiterated a Buy rating and raised his price target from $35 to $40.
The Thesis
After conducting an analysis of search trends and store checks, the Yeti brand is becoming increasingly sought after, Konik said.
“YETI is gaining traction in new colorways, cooler demand is strengthening, shelf space at DKS is growing, and e-comm conversion is improving,” Konik wrote in a note.
The analyst raised 2020 EPS estimates and said the company is in the early stages of global growth and shares will continue to move higher.
Jefferies sees significant opportunity for Yeti to expand its total addressable market, as it broadens its exposure to non-heritage markets in the United States over the long term and grows international penetration from 2 percent today to 7 percent by 2020.
“With continuous innovation in new and existing product categories, and a quickly growing margin enhancing DTC channel, we believe top-line and margin opportunities are significant,” Konik added.
The analyst also said coolers are showing positive momentum and Yeti.com is seeing an increasing share of visits to both its hard and soft cooler domain pages.
Price Action
Yeti's stock traded higher during a down day for the market Friday. Shares traded around $28.89 Friday afternoon.
Related Links:
Newell Brands Plunges 14% After Cutting Guidance Again
Photo credit: Zachary Collier, Flickr
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.