2023-06-15 10:28:28 ET
Yeti Holdings ( NYSE: YETI ) is not the only drinkware company available for outdoorsman and beachgoers this summer, prompting Canaccord Genuity to temper expectations.
The firm noted that recent channel checks pointed to Stanley as a top seller at Dick’s Sporting Goods locations, with demand only picking up. Indeed, a new report quoted store associates as saying that Stanley cups sell out the very first day they are put on shelves.
In terms of e-commerce, the team also noted that Yeti’s web traffic has been down 5% and 9% in April and May and flat thus far in June.
As such, the team tempered their price target, though they were not shaken from their bullish outlook overall as more long-term data on competition is required. Thermo-Fisher's Nalgene product and Newell Brands' Contigo were cited as other competitors that enjoyed fluctuations in popularity.
“With an up-and-coming competitor making its presence felt in drinkware, we modestly reduce our estimates and PT to $54 (from $56), but keep our BUY rating as we believe it is too early to determine if the recent popularity of Stanley (private) has staying power,” the team concluded.
More on Yeti:
Seeking Alpha’s Quant rating on Yeti
YETI: Powerful Consumer Brand With Rebound Potential
YETI Q1 Results: Hit A Speed Bump, But Growth Likely To Return
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Yeti faces stiff competition as key summer season commences