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

Core Insights - YETI Holdings, Inc. shares are currently trading lower despite an upgrade from BofA Securities analyst Alexander Perry, who raised the price target to $55 from$ 46 and upgraded the rating to Buy from Neutral [1] Financial Performance - YETI reported adjusted EPS of $0.70, reflecting a 23% year-over-year increase, which surpassed estimates [2] - The company has revised its FY24 adjusted sales growth projection to 8% – 10%, up from the previous range of 7% – 9%, and adjusted EPS guidance to$ 2.61 – $2.65, compared to the prior estimate of$ 2.49 – $2.62 [2] Analyst Expectations - The bullish outlook from the analyst is driven by anticipated gains from NFL drinkware, cooler rollouts, a strong third-quarter performance during Amazon Prime Day, new product launches, and solid long-term growth prospects in markets such as Japan, the U.K., and Germany [2] - The FY24 EPS estimate has been raised to$ 2.65 from $2.60, with expectations that the NFL deal will enhance revenue in 2025 [3] Strategic Initiatives - The analyst has also increased YETI's EPS estimates for 2025-26, highlighting the company's long-term strategy that includes diversification through new product lines such as backpacks and cookware, deeper expansion into European and Asian markets, potential mergers and acquisitions for technology and talent, and share repurchases planned for 2024 [3]