Piper Sandler has left its recommendation on Yeti Holdings Inc. (NYSE:YETI) unchanged, maintaining an Overweight rating and a $54.00 price target in the wake of the company’s fourth-quarter financial results.
The investment bank pointed to a pair of upside surprises in the quarter, with both revenue and earnings coming in ahead of consensus. Notably, drinkware - a core product category for the company - reversed three consecutive quarterly declines and returned to growth. International revenue expanded 25% year-over-year, according to the report.
Market performance has reflected improving sentiment: Yeti’s shares have appreciated roughly 38% over the last six months and were trading at $47.06, giving the company a market capitalization of $3.66 billion. Data from InvestingPro cited in the review lists Yeti’s gross profit margin at 57% and a price-to-earnings ratio of 24.35.
Guidance for fiscal 2026 included revenue targets that sit above consensus, but management’s earnings outlook fell short of expectations. Piper Sandler attributed the earnings miss to larger-than-expected tariff impacts projected for 2026, calling out tariffs as a principal near-term headwind to profitability.
Independent analysis on the InvestingPro platform described the stock as trading below its Fair Value estimate and assigned Yeti a Financial Health Score of "GREAT." The platform’s commentary suggests valuation and balance-sheet metrics remain supportive even as the company navigates cost pressures.
Operational details in the quarter showed a 6% decline in inventory year-over-year, a change the company linked to ongoing supply chain constraints. At the wholesale level in the U.S., sell-through continued to outpace sell-in during the reporting period, a dynamic highlighted in the company update.
The company also announced an executive change in finance. Long-time chief financial officer Mike McMullen is leaving the firm. Scott Bomar, previously senior vice president of finance at Home Depot, has been named as his successor.
Yeti’s reported fourth-quarter earnings per share were $0.92, exceeding the $0.88 consensus estimate. Revenue for the quarter reached $583.7 million, slightly above the $580.6 million projection.
Following the quarter, B.Riley moved to an upgraded stance on Yeti, raising its rating from Neutral to Buy and setting a $54 price target. Analyst Anna Glaessgen at B.Riley highlighted what she described as an attractive risk-reward profile and a plausible top-line growth path. Jefferies also reiterated a Buy rating, with a $70 price target, citing the company’s robust quarterly performance.
Together, the broker notes and the company’s results have generated generally favorable analyst commentary about Yeti’s near-term outlook, even as tariff pressures and supply chain limits present measurable uncertainties.
Key points
- Piper Sandler maintained an Overweight rating and $54.00 price target after Q4 revenue and EPS beats.
- Drinkware returned to growth; International sales rose 25% year-over-year. Earnings per share were $0.92 versus $0.88 forecast and revenue was $583.7 million versus $580.6 million forecast.
- Stock performance has been strong, up about 38% over six months, with a market cap of $3.66 billion; InvestingPro lists a 57% gross margin and a P/E of 24.35.
Risks and uncertainties
- Tariff pressures: Piper Sandler linked lower-than-expected 2026 earnings guidance to greater tariff headwinds, which may affect margins - a risk to both consumer discretionary and manufacturing cost lines.
- Supply chain constraints: Inventory fell 6% year-over-year due to supply limitations, indicating potential distribution and fulfillment uncertainty that could influence wholesale and retail channels.
Conclusion
Yeti’s latest quarter produced a pair of modest beats and signs of product-category recovery that underpinned continued analyst support. However, broker commentary and company guidance point to tangible near-term pressures from tariffs and supply chain constraints, offset by solid profitability metrics and bullish broker targets.