Yeti weaker than expected report likely to embolden bears, says Morgan Stanley

Morgan Stanley notes that Yeti reported a Q4 top and bottom line miss, contrary to the firm’s expectations for a modest beat on both, and while arguing that guidance “appears to have some built in conservatism that suggest the EPS guide could be somewhat de-risked,” the focus is likely to be on the topline, especially given recent stock outperformance. Softer direct-to-consumer trends, weak performance in coolers, and two new acquisitions are “likely to embolden bear concerns on slowing underlying growth,” adds the firm, which “wouldn’t be surprised to see the multiple de-rate today” and see the stock trading in “the high-30s to low-40s.” The firm has an Equal Weight rating and $46 price target on Yeti shares ahead of the company’s 8 am ET earnings call.