2023-07-17 10:28:58 ET
YETI Holdings ( NYSE: YETI ) traded sharply lower in Monday morning trading after KeyBanc Capital Markets downgraded the consumer products stock to an Underweight rating from Sector Weight.
Analyst Noah Zatzkin warned that the growth algorithm on YETI ( YETI ) might be cracked, with macro headwinds and competition in the mix. Zatzkin and team have growing skepticism of YETI's ( YETI ) ability to deliver on a peak-season revenue hockey-stick and return to a sustainable double-digit revenue growth over the middle-term amid ongoing email promotion, heavy wholesale channel inventory, rare/broad in-store discounts, and softer direct to consumer trends.
"While we were hesitant to d/g YETI in mid-June, recent price action (up ~17% since our last note on 6/22/23 vs. S&P 500 up ~3%) and incremental evidence of persistent promo, competitor brand heat, and DTC softness increases downside risk, in our view."
KeyBank lowered FY23 and FY24 EPS estimates on YETI ( YETI ) and set a price target of $34, which works out to ~14X the firm's FY24E EPS, above outdoor hardgoods peers and slightly below the blended set.
YETI ( YETI ) has 8 Buy-equivalent ratings from Wall Street analysts vs. 8 Hold-equivalent ratings and no Sell-equivalent ratings. The Seeking Alpha Quant Rating on YETI is Hold due to a low mark for valuation. Seeking Alpha analysts have a consensus Buy rating on YETI ( YETI ).
Shares of YETI ( F ) fell 4.98% in early Monday morning trading to $40.49 vs. the 52-week trading range of $27.86 to $55.15.
More on YETI:
- YETI Holdings: Upgrading To Buy As Demand Seems To Be Recovering
- Relative strength index and moving averages
- Seeking Alpha's Quant Rating for YETI
For further details see:
YETI slides after KeyBanc turns bearish on mid-term setup for the stock