Analysts Overwhelmingly Bullish On Outdoor Brand Yeti; Company Eyes International Growth

Yeti Holdings Inc YETI continues to be one of the hottest stocks of 2019, with shares nearly doubling year-to-date.

The Austin, Texas-based company's momentum is continuing after reporting a big first-quarter earnings beat Thursday. Here's how the sell-side reacted. 

KeyBanc Capital Markets 

Yeti investors digested solid first-quarter results in the face of inordinately high expectations during what remains a relatively seasonally insignificant quarter, analyst Brett Andress said in a Thursday note. 

“We firmly believe that the brand continues to resonate with consumers and view YETI’s raised guide as conservative given momentum and execution,” the analyst said. 

KeyBanc maintains an Overweight rating on Yeti and raised the price target from $26 to $36.

Cowen 

Analyst John Kernan also continues to see upside in Yeti and said its brand awareness will broaden with new media partners, brand activations and partnerships as the company takes on new customers and builds awareness in non-heritage markets.

“Entry strategies in Europe, Canada and Australia are beginning to pave the way for International growth - we model International +150% in FY19,” the analyst said. 

Cowen maintains an Outperform rating with a $35 price target.

Stifel 

Yeti has several catalysts that could result in the sales guidance being conservative, analyst Jim Duffy said in a Thursday note. 

“With brand momentum, retail store openings still ahead and new products scheduled for release in coming quarters, we see potential for revenue to prove conservative,” the analyst said. 

Yeti is uniquely positioned at the intersection of secular trends including the elimination of single-use plastic and paying a premium for quality things that last, Duffy said. 

“We believe brand opportunities remain under appreciated by many in the investment community.”

Stifel maintained a Buy rating on the company and raised the price target from $30 to $36.

Morgan Stanley 

Morgan Stanley analyst Kimberly Greenberger was less bullish than the rest and said Yeti's first quarter was a clean one overshadowed by profit-taking.

The analyst said she sees balanced risk-reward moving forward.

Morgan Stanley maintained an Equal-weight rating with a $32 price target.

Price Action

Yeti shares were up 1.84 percent at $31.50 at the close Friday. 

Related Links:

Jefferies: Yeti Is In The Early Stages Of Global Growth

A Look At Yeti's Competitors

Photo courtesy of Yeti.