Yeti stock holds at Neutral as UBS keeps $51 target ahead of meeting

UBS has maintained a Neutral rating and a $51 target price for Yeti Holdings Inc. (NYSE:YETI) as the company prepares for its analyst meeting in Austin, Texas on September 17. The focus of the rating remains the company's long-term sales target of high-single-digit to low-double-digit growth. Investors are seeking more clarity on growth drivers, as the high end of the model has been difficult to achieve.

UBS has heard questions about whether management will adjust the target, but management remains confident, including during mid-August earnings. Despite a 23% drop in shares over the past month, with the stock now at $40.08, UBS believes YETI is undervalued. The Fair Value analysis suggests significant upside potential. However, for shares to re-rate, greater comfort on the long-term building blocks is required.

Analyzing YETI through InvestingPro provides additional insights, including a 59% gross profit margin and capital allocation strategies that appeal to shareholders. Other recent developments include Yeti exceeding earnings estimates, leading to a price target increase from Stifel to $45. BofA Securities and Raymond James also raised their price targets, while Jefferies remains bullish with a $80 target. The mixed analyst sentiment reflects divergent views on Yeti's growth prospects.