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According to Canaccord Genuity, investors should use Yeti’s sharp pullback to buy a company with “solid fundamentals” at a deep discount. Analyst Brian McNamara initiated coverage of the cooler and beverage maker with a buy rating in a note to customers on Wednesday, saying the stock is as “bear-proof as its coolers” and calling the company “an iconic global lifestyle brand with endurance.” “We believe this is a story of long-term growth for a brand that is still underserved in many parts of the US, while nascent international business should be a disproportionate growth driver going forward,” he wrote, adding that short-term margin issues have masked the company’s potential. . Yeti stock has been the worst performer since the start of the year, down 48% compared to the S&P 500’s drop of about 18%. The company’s $58 price target suggests the stock could rebound about 35% from Wednesday’s close. “Despite the first ‘miss’ as a public company with Q2 results and the potential risk that the new CFO could lower the bar, we believe market expectations are overly conservative,” McNamara wrote. “Trading on the EPS 16x 2023E consensus forecast, at a 9% discount to the S&P500 (compared to an average pre-pandemic premium of 34%), we find last year’s downgrade to be excessive and urge investors to exploit the backlog. as an opportunity to purchase this iconic global lifestyle brand at a discount,” he added. Shares traded unchanged on Thursday. —Michael Bloom of CNBC provided the coverage.
Credit: www.cnbc.com /