Please ensure Javascript is enabled for purposes of website accessibility

These 3 Analysts Agree: Yeti Is a Buy

By Rich Duprey - Feb 12, 2021 at 1:45PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The cooler maker still has plenty of room to expand, particularly as it enters new markets.

Yeti (YETI 8.84%) beat Wall Street sales and earnings expectations yesterday, and today a trio of analysts agreed that the stock of the high-end cooler and outdoor lifestyle company is a buy. They also see shares jumping, with as much as 30% upside.

Yeti also made the short list of best stock ideas from one of Hedgeye Risk Management's analysts, but another Hedgeye analyst cautions that the cooler maker's growth is due to slow in the coming months, though she maintains it's going to be better than what she originally thought.

Man pulling a Yeti cooler onto the beach

Image source: Yeti.

The pandemic sent consumers out into the wilderness in droves, and apparently they were all dragging Yeti coolers behind them while drinking from Yeti tumblers.

Fiscal fourth-quarter sales jumped 26% to almost $376 million, well ahead of the consensus estimates of $358 million, as cooler sales jumped 31% to $134 million, and drinkware sales were up 23% to $236 million. Margins expanded to 59.8% from 54.5% in the process.

Citi analyst Wendy Nicholson upgraded Yeti's stock to buy from hold, and set a $91 price target. That's up 7% from her previous $85 target, and 27% higher from where Yeti shares closed yesterday.

She also expects Yeti's "COVID-fueled" sales to slow from current levels, and management's forecast of 15% to 17% growth this year is more than she was modeling. And because Yeti plans to enter the luggage market, the upside could last longer than Nicholson forecast.

Piper Sandler analyst Peter Keith  boosted his price target to $95 based on yesterday's earnings while maintaining his overweight recommendation. He would also be a buyer after Yeti's stock fell following the earnings release.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

YETI Holdings, Inc. Stock Quote
YETI Holdings, Inc.
YETI
$45.33 (8.84%) $3.68

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
344%
 
S&P 500 Returns
120%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.