Morgan Stanley analyst Megan Alexander reiterated an Equalweight rating and $48.00 price target on Yeti Holdings Inc. (NYSE: YETI)

The analyst comments "Our take: Solid 4Q bottom-line beat with EPS of $1.00, ~7% above the Street's $0.93 on ~in-line sales and gross margin performance with better SG&A and a lower share count driving the upside. On the guide, YETI expects '25 EPS of $2.90-$2.95, looping in the Street at the low-end ($2.90 per Consensus Metrix) though the outlook includes a $0.10 unfavorable impact from FX that we suspect the Street was not modeling. Sales are expected to grow 6-8% in constant currency (5-7% including FX), which is not a surprise, though we think achievability may be a point of debate today considering 1) 4Q adj sales grew ~7% on an easy compare (+1% in 4Q23) including a favorable adjustment from recall reserves and 2) management commentary indicating a challenging US environment ("more discerning consumer buying behavior, more promotional activity, and heightened competition). However, the guide also has a 53rd week that we don't think was included in Street expectations, which would seem to suggest underlying growth closer to ~MSD%. Also as anticipated, the guide embeds operating margin expansion, which we believe will come more from SG&A leverage vs. gross margin expansion. We note it is unclear from the release whether the guide embeds incremental tariffs (YETI has China and Mexico exposure), which we believe will be important for informing the stock reaction today. Net, a solid report and against muted investor sentiment; we think the stock could see some relief today, though we believe flow-through may be muted given the points we highlighted."

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Shares of Yeti Holdings Inc. closed at $37.91 yesterday.