Yeti Holdings ( NYSE: YETI ) stock slid in Wednesday’s premarket trading after Cowen analyst John Kernan stepped to the sidelines on the name.
“We are downgrading YETI to Market Perform as data regarding brand level e-com traffic trends is moderating into FY23 with DTC a key top-line and margin driver,” he wrote in a note to clients. “YETI remains a premium, full-price positioned brand, but we see risk to Consensus EPS estimates in FY23 despite a much more benign freight cost environment.”
He added that elevated inventory levels for drinkware will likely constrain top line growth for the company as well.
Kernan maintained a $47 price target on the name alongside the downgrade to Hold-equivalent, noting the sharp jump for the stock since that target was assigned in November. Shares of the Texas-based consumer products company fell 1.79% in premarket action on Wednesday.
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Yeti Holdings stock slips as Cowen calls out e-commerce traffic moderation