B.Riley has upgraded Yeti Holdings Inc. (NYSE: YETI) to a Buy rating from Neutral and raised its price target to $54, up from $35. The firm attributed the move to an improved outlook for Yeti's drinkware business and other indicators of durable growth. At the time of the note, the stock was trading at $47.06, while InvestingPro data places the companys Fair Value at $54.85, closely matching B.Riley's revised target.
Analyst Anna Glaessgen said the firm now sees an attractive risk/reward profile for YETI. B.Riley highlighted an achievable plan for top-line expansion and noted that better drinkware performance in the fourth quarter helped mitigate one of the firm's primary concerns about the business. The firm also pointed out that the stock currently trades at roughly 9.5 times B.Riley's 2027 EBITDA estimate.
Key financial characteristics cited by B.Riley include a 15% 10-year compound annual growth rate in sales, strong margins and free cash flow generation, and a net cash balance sheet. The companys gross profit margin of 57.39% was emphasized as evidence of pricing power and operational efficiency. Yeti's market capitalization was reported at $3.66 billion.
Looking ahead, B.Riley expects a recovery in drinkware sales and continued strength in Yeti's cooler and equipment lines. The firm projects an acceleration in growth in 2026, which it believes will help address lingering investor concerns about the business trajectory.
Recent operating results and other analyst views
Yeti reported a strong fourth quarter for fiscal 2025, delivering EPS of $0.92, above the consensus of $0.88. Revenue for the quarter totaled $583.7 million versus an expected $580.6 million. Separately, Jefferies has reiterated a Buy rating on Yeti with a price target of $70, signaling continued confidence from that firm as well.
Investor considerations and potential catalysts
B.Riley flagged several factors that could sway investor sentiment. The appointment of a new chief financial officer and an upcoming investor day were identified as potential positive catalysts that might bolster confidence in longer-term growth initiatives, such as product innovation, category expansion and international penetration.
At the same time, B.Riley acknowledged that concerns related to brand maturation may not disappear entirely. The firm also pointed to macro pressure and consumer discretionary demand as ongoing areas of caution, as well as competitive dynamics involving brands such as Stanley and Owala that have contributed to investor scrutiny.
The stock has shown notable momentum recently, posting a 38% return over the past six months.
Conclusion
B.Riley's upgrade to Buy and higher price target reflect a more favorable view of Yeti's near-term operational trends and a belief that the company can translate margin strength and cash generation into sustainable growth. The firm's stance is tempered by explicit acknowledgment of persistent risks, including brand maturation and demand sensitivity, while naming specific potential catalysts that could influence investor confidence.