YETI's Long-Term Growth Potential Shines: BofA Analyst Predicts Major Gains from Global Expansion and M&A

YETI Holdings, Inc. (NYSE:YETI) shares are trading lower Friday. BofA Securities analyst Alexander Perry upgraded the company to Buy (from Neutral) and raised the price target to $55 (from $46).

The company reported second-quarter financial results yesterday and raised FY24 adjusted EPS guidance.

YETI reported adjusted EPS of $0.70 (+23% Y/Y), beating the estimate. The company projects FY24 adjusted sales to rise 8% – 10% (up from 7% – 9% prior) and adjusted EPS of $2.61 – $2.65 (versus $2.59 estimate), up from prior guidance of $2.49 – $2.62.

The analyst’s bullish stance reflects expected gains from NFL drinkware, cooler rollouts, strong third-quarter Amazon Prime Day, new products and solid long-term growth prospects in Japan, the U.K., and Germany.

Perry raised the FY24 EPS estimate to $2.65 (from $2.60) and expects the NFL deal to boost 2025 revenue.

The analyst also increased YETI’s 2025-26 EPS estimates. Perry expects YETI’s long-term strategy to benefit from diversification with new backpacks and cookware, deeper European and Asian expansion, and potential M&A for tech and talent, plus share repurchases in 2024.

Investors can gain exposure to the stock via Harbor Human Capital Factor US Small Cap ETF (NYSE:HAPS).

Price Action: YETI shares are down 4.26% at $41.29 at the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.