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Jefferies: Yeti Is In The Early Stages Of Global Growth

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Jefferies: Yeti Is In The Early Stages Of Global Growth

One analyst is overwhelmingly bullish on YETI Holdings, Inc. (NYSE: 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.

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Photo credit: Zachary Collier, Flickr

Latest Ratings for YETI

DateFirmActionFromTo
Apr 2019Initiates Coverage OnOutperform
Mar 2019DowngradesOverweightEqual-Weight
Mar 2019MaintainsBuy

View More Analyst Ratings for YETI
View the Latest Analyst Ratings

Posted-In: Jefferies Randal KonikAnalyst Color Price Target Analyst Ratings Best of Benzinga

 

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