Analyst Sentiment Remains Cautious on YETI Holdings Despite Strong Quarter

Market experts maintain a predominantly neutral stance on YETI Holdings Inc, with a majority of research firms issuing "Hold" ratings. This caution persists even in the wake of a stronger-than-anticipated quarterly report and notable buying activity from several major institutional investors, reflecting ongoing skepticism about the company's profit trajectory.

A clear divergence has emerged between analyst posture and the actions of some large investors. Wellington Management Group LLP significantly increased its stake during the third quarter, boosting its holdings by 14.3% to over 5.5 million shares, a position valued at more than $185 million. Reinhart Partners similarly expanded its position by 24.2% in the same period.

This bullish institutional behavior is not entirely new. In prior quarters, other investors displayed optimism: Westwood Holdings Group raised its stake by 110.2% in Q2, while Engaged Capital LLC increased its position by 40.1%. However, not all major shareholders shared this enthusiasm. Russell Investments reduced its holdings by 47.0% in the second quarter, and Brown Advisory LLC trimmed its stake by 6.0%.

Quarterly Performance Exceeds Expectations

The outdoor lifestyle brand's latest financial results surpassed market forecasts. For the third quarter, YETI reported adjusted earnings per share of $0.61, topping estimates by $0.04. Revenue reached $487.77 million, exceeding the projected $480.08 million. In a year-over-year comparison, revenue grew by 1.9%, although earnings per share declined from the $0.71 reported in the prior-year period.

Should investors sell immediately? Or is it worth buying YETI Holdings Inc?

Guidance and Price Targets Underpin Neutral Stance

The primary source of analyst restraint appears to be the company's own forward-looking statements. YETI's full-year 2025 EPS guidance, set between $2.38 and $2.49, falls below the average analyst estimate of $2.57.

The current consensus among fifteen covering firms reflects this mixed picture: nine recommend holding the stock, while six designate it a buy. The average 12-month price target stands at $38.33. Following the earnings release, several institutions revised their targets upward:
* Morgan Stanley raised its target from $37.00 to $39.00 on October 27.
* UBS Group increased its price objective from $35.00 to $38.00 on November 7.

Trading recently at $43.41, YETI's shares are approaching their 52-week high of $45.25. Investors are likely to watch for new signals from the company's management during their scheduled appearance at the KeyBanc Capital Markets Consumer Conference on December 12.