Brunswick and YETI Holdings cut at KeyBanc on near-term headwinds

Brunswick (NYSE:) was cut to Sector Weight from Overweight, while YETI Holdings (NYSE:) was moved to Underweight from Sector Weight with a $34 price target at KeyBanc Capital Markets on Monday.

Analysts told investors that for BC, their channel work and monthly retail weakness “signal a more challenged late-2023+ setup, coupled with our view investors may be underappreciating possible risk of NT volume headwinds and Navico earnings softness.”

They added that while they think BC’s position in the engine duopoly is appealing long-term, they see the culmination of several headwinds as a risk. One of the headwinds highlighted was that checks highlight engine inventory normalization.

For YETI, KeyBanc believes the recent price action, macro pressures, competitor brand heat, and heavy inventory add risk to its fourth quarter and beyond results.

“Golf is still good, but our concerns for YETI are mounting,” said analysts. They also are skeptical of YETI’s ability to deliver on a peak-season revenue and return to a sustainable +DD growth algo over the medium-term.