YETI: Durable Buybacks And FY26 Setup Will Drive Balanced Future Prospects

Analysts have nudged their blended fair value target for YETI Holdings slightly higher to about $41 per share from roughly $40.47, citing improving visibility into a rebound in global drinkware growth, durable share repurchases that could modestly boost EPS, and a favorable Q3 and FY26 setup supported by new product launches and operating leverage.

Analyst Commentary

Street research points to a more constructive but still balanced outlook for YETI Holdings, with recent commentary highlighting both improving growth visibility and lingering category and competitive risks.

Bullish Takeaways

• Bullish analysts point to strengthening visibility around a return to global drinkware growth beginning in Q4, supporting the case for gradual reacceleration in top line and multiple expansion from current levels.
• Recent discussions with management suggest FY26 could see an acceleration in revenue growth as new product launches and operating leverage take hold. If executed well, this would support higher long term earnings power.
• Robust web traffic trends through August, especially following a July inflection, are viewed as an early signal that Q3 results could surprise to the upside, creating potential near term catalysts for the stock.
• An apparent step up in the pace of share repurchases is considered durable and could contribute an incremental 1 percent to 2 percent to the EPS growth algorithm over the next few years, enhancing total shareholder return even in a moderate demand environment.

Bearish Takeaways

• Bearish analysts remain cautious on the U.S. drinkware category, which is still expected to face a highly competitive and promotional backdrop, posing downside risk to pricing, mix, and margin assumptions.
• The fair value debate is influenced by execution risk around new product launches and the timing of an FY26 growth inflection. Any delays or missteps could cap valuation upside in the near term.
• Some investors question the sustainability of recent digital and web traffic strength, viewing it as potentially volatile and sensitive to macro and promotional trends, which could limit confidence in Q3 upside.
• While buybacks support EPS, skeptics note that relying too heavily on financial engineering rather than durable volume and margin expansion could constrain the premium investors are willing to pay for the shares.

What's in the News

• YETI Holdings completed a major share repurchase program, buying back 10,149,803 shares (12.11 percent of shares outstanding) for a total of $372.82 million under the buyback announced on February 15, 2024 (company filing).
• Between June 29, 2025 and November 6, 2025, the company repurchased 4,278,800 shares (5.21 percent of shares outstanding) for $149.85 million as the final tranche of this authorization (company filing).

Valuation Changes

• Fair Value: nudged slightly higher to approximately $41.00 per share from about $40.47, reflecting modestly improved fundamentals.
• Discount Rate: increased marginally to roughly 7.27 percent from about 7.22 percent, implying a slightly higher required return.
• Revenue Growth: effectively unchanged at approximately 5.57 percent, indicating no meaningful shift in top line growth assumptions.
• Net Profit Margin: essentially flat at about 9.42 percent, suggesting stable expectations for profitability.
• Future P/E: risen modestly to around 16.21x from roughly 15.97x, pointing to a slightly higher valuation multiple on forward earnings.