(Bloomberg) -- Yeti Holdings Inc.'s shares tumbled after Morgan Stanley handed the stock its first downgrade, ending the company's perfect streak of bullish calls.
Shares fell as much as 10 percent, putting them on track for their second straight negative session, though Yeti hit an intraday record on Thursday before reversing direction. Despite the recent losses, the cooler company has been one of the biggest gainers of the past few months. The stock has soared more than 130 percent off a December low.
Morgan Stanley cited that rally in its downgrade to equal weight. Analyst Kimberly Greenberger wrote that she remained “constructive on YETI's long-term outlook,” but that “at these levels the market appears to already price in the majority of YETI's potential Ebit margin upside.”
Despite the rating cut, the firm raised its price target on the stock to $32 from $26. Greenberger wrote that should the stock pull back, Morgan Stanley would consider returning its rating to overweight.
Eleven firms have a buy rating on Yeti. Morgan Stanley is the only hold-equivalent rating, and none of the firms tracked by Bloomberg have a sell rating on the stock.
To contact the reporter on this story: Ryan Vlastelica in New York at rvlastelica1@bloomberg.net
To contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Will Daley
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