Citi maintains Buy rating, $47 target on Yeti Holdings stock

On Thursday, Citi analysts reiterated their Buy rating and $47.00 price target on Yeti Holdings Inc. (NYSE: NYSE:YETI), currently trading at $34.26, following an examination of web traffic data as an indicator of sales trends. According to InvestingPro data, analyst targets range from $35 to $55, reflecting mixed sentiment on the stock. The analysis, which focused on Yeti and its competitors within the hydration sector, utilized data compiled by Citi’s Innovation Lab from Similarweb (NYSE:SMWB).

The report noted a general downturn in global web traffic for hydration brands during the first quarter of 2025, with significant year-over-year declines observed in both January and February. This marks a notable shift from the growth trend the industry experienced over the prior two years. Despite this overall industry weakness, Yeti has managed to capture a larger share of global web traffic among hydration brands in the first quarter of 2025. This comes after a period of sustained quarterly share losses. InvestingPro data shows the company maintains strong fundamentals with a 58.1% gross margin and healthy revenue growth of 10.3% over the last twelve months.

Yeti’s website traffic specifically has also been soft in the first quarter of 2025, with a slight downward trend in average unique visitors and total visits when compared to the fourth quarter of 2024. The data suggests a challenging start to the year for the broader hydration category, as well as for Yeti.

Citi’s analysis aims to provide a more comprehensive view of the competitive dynamics within the hydration industry and offer insights into Yeti’s sales trends based on web traffic patterns. Despite the soft traffic data, Citi maintains a positive outlook on Yeti Holdings Inc., as reflected in the maintained Buy rating and price target, which remains unchanged at $47.00.

In other recent news, Yeti Holdings Inc. has announced significant developments, including the appointment of J. Magnus Welander and Arne Arens to its Board of Directors, effective March 24, 2025. These appointments are part of a cooperation agreement with Engaged Capital, LLC, aimed at enhancing Yeti’s strategic growth and governance. The board expansion increases the number of directors to ten, with nine being independent, reflecting Yeti’s commitment to strengthening its leadership. Analysts have weighed in on these changes, with Jefferies maintaining a Buy rating and a $55 price target, citing Yeti’s brand strength and substantial cash flow. Citi also reiterated a Buy rating with a $47 price target, emphasizing the importance of the new board members’ experience in brand leadership and outdoor products. Conversely, Canaccord Genuity maintained a Hold rating and a $42 price target, noting potential uncertainties like tariffs and competitive intensity. The collaboration with Engaged Capital is seen as a proactive step towards fostering long-term growth and shareholder value, with the market responding positively to these strategic moves.

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