Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - UBS has reiterated its Neutral rating and $35.00 price target on Yeti Holdings Inc. (NYSE:YETI) following the company’s second-quarter earnings report. According to InvestingPro data, analyst targets for the stock range from $32 to $53, with 13 analysts recently revising their earnings estimates upward.
Yeti shares fell 10% despite the company delivering an earnings per share beat, as weaker top-line growth was offset by stronger gross margin and operating profit margin performance. The company maintains a healthy gross profit margin of 58.4%, while InvestingPro analysis shows the stock is currently trading below its Fair Value, suggesting potential upside opportunity.
The outdoor products manufacturer lowered its net sales growth outlook for the year, citing ongoing softness and a slower-than-expected recovery in its U.S. Drinkware segment.
UBS noted that while margins benefited from lower-than-expected tariffs this quarter, management highlighted tariffs remain a key area of uncertainty and reiterated their focus on cost efficiencies within supply chain networks, targeting less than 5% of cost of goods sold on products sourced from China by year-end.
Despite Yeti trading at an attractive valuation of approximately 15 times earnings versus its five-year average of about 20 times, UBS believes investors will likely wait for improved visibility on underlying trends and greater confidence in the company’s mitigation efforts before becoming more positive on the stock.
In other recent news, Yeti Holdings Inc. reported its second-quarter earnings for 2025, revealing an adjusted earnings per share (EPS) of $0.66, which exceeded analysts’ expectations of $0.54. Despite this positive earnings result, the company’s revenue fell short, recording $445.9 million against the anticipated $462.8 million. This revenue miss raised concerns among investors, despite the better-than-expected profits. Additionally, Roth/MKM adjusted its price target for Yeti Holdings, increasing it to $33 from $30, while maintaining a Neutral rating on the stock. The adjustment was made following what the research firm described as a "mixed" second quarter, citing softer wholesale demand trends as a factor. These developments are part of the recent updates surrounding Yeti Holdings.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.