Shares of outdoor lifestyle products company Yeti Holdings plunged Friday, after getting downgraded by Morgan Stanley analysts.
Morgan Stanley lowered its rating on the stock to equal weight from overweight. Analyst Kimberly Greenberger wrote in a note to clients, “at these levels the market appears to already price in the majority of YETI’s potential Ebit margin upside”, while still remaining optimistic on the drinks-holder & cooler maker’s long-term prospects.
Greenberger also indicated that Morgan Stanley would consider reverting to its overweight rating on Yeti, only if the stock pulls back from its lofty levels. The stock is up around +130% from its December low.
After Morgan Stanley’s downgrade, Yeti shares slumped -10% Friday.
Despite the rating cut, Morgan Stanley upped its price target on the stock to $32 from $26.