Piper cuts Traeger to 'neutral' saying fundamentals remain challenged

Traeger

15/03/2023 08:56

** Piper Sandler downgrades wood pellet grill maker Traeger
Inc  COOK.N  to "neutral" from "overweight" 
    ** Says while COOK has long-term growth potential, co's
fundamentals likely to remain challenged for coming quarters 
    ** Believes elevated inventory at retail is likely to create
promotional environment in 2023, which could present sales
headwind for COOK and/or force price reductions 
    ** Adds no meaningful expansion to new retail partners along
with elevated spending in 2023 will be factors weighing on stock
    ** Broker cuts PT to $4 from $6 reflecting reduced EBITDA
outlook and concerns about debt leverage
    ** Two of 10 brokerages rate the stock "buy" or higher, 8
"hold"; median PT is $3.75 - Refinitiv data
    ** Up to last close, stock up ~34%

 (Reporting by Roshan Abraham)
 ((Roshan.Abraham@thomsonreuters.com))