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YETI Holdings Surges Amid Takeover Speculation
ByAinvest
Sunday, Jul 27, 2025 4:48 am ET1min read
YETI Holdings shares rose 5.4% amid speculation of takeover interest. The identity of the suitor is unknown, with traders citing a private equity firm as a potential buyer. The speculation was fueled by a "uncooked" alert circulating on Friday from Betaville.
YETI Holdings (NYSE: YETI) saw its shares rise by 5.4% on Friday amid speculation of takeover interest. The identity of the potential buyer remains unknown, but traders have cited a private equity firm as a possible suitor. The speculation was fueled by a "uncooked" alert from Betaville that circulated on Friday [1].The rise in YETI's stock price comes amidst a positive outlook from analysts. Citigroup recently raised its price target on YETI from $36 to $44, indicating a potential 16% upside [2]. This optimism is driven by factors such as higher web traffic and the viral success of a new product on TikTok, the Camino 35 Carryall Tote. This product, typically used for hiking, fishing, camping, or beach-going activities, has been repurposed as the "ultimate mom bag" and has seen a significant increase in online searches, up 12-fold over the last month [2].
However, the company faces challenges. A recent downgrade by an analyst highlighted the vulnerabilities of YETI's business model. The analyst pointed out that YETI's guidance for FY25 has been cut by nearly half, with adjusted EPS guidance slashed by 32% and free cash flow guidance reduced by 43% [3]. The company is also facing headwinds from tariffs, which could impact its margins and profitability.
Despite these challenges, YETI's stock has rebounded from its April lows, gaining around 30% from the mid-$20s. The question remains whether this rebound is a genuine rally or just a temporary "dead cat bounce" [3]. The company's international sales growth, which accounted for its overall revenue growth, remains a critical factor in its future performance.
References:
[1] https://seekingalpha.com/news/4472187-yeti-holdings-gains-amid-takeover-speculation
[2] https://finance.yahoo.com/news/why-yeti-stock-surged-higher-180720717.html
[3] https://seekingalpha.com/article/4804408-yeti-holdings-sell-this-stock-as-us-sales-falter-and-tariffs-eat-into-fcf-downgrade
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