Goldman Sachs has lowered its price target for Yeti Holdings, Inc. (YETI, Financial) shares from $41 to $29, while maintaining a Neutral rating on the company. This adjustment is part of a broader revision of expectations for the U.S. apparel and softlines sector, prompted by a cautious macroeconomic outlook.
The investment bank's revised analysis comes as it projects U.S. GDP growth to taper significantly, with expectations reduced from a 2.5% increase in 2024 to just 0.5% in 2025 on a year-over-year basis. Goldman Sachs analysts have also noted an increased probability of a recession, now estimated at 45%, although they have not fully factored a recession into their current forecasts.
The firm's caution stems from heightened market volatility, geopolitical uncertainties, and the impact of rising tariff rates, all of which are considered potential threats to corporate earnings. Consequently, these factors inform the more conservative stance on Yeti and similar companies within the sector.
