RBC downgrades Traeger to "sector perform" as housing market slows

Traeger

03/01/2023 12:21

** RBC downgrades wood pellet grill maker Traeger Inc
 COOK.N  to "sector perform" from "outperform"
    ** Lowers PT to $3 from $4, amongst the lowest on Wall
Street
    ** Brokerage says the Traeger brand is healthy in the eyes
of consumers but broader macro pressures continuing to challenge
the industry with the re-prioritization of discretionary dollars
towards essentials
    ** RBC notes that with housing slowing, it is a headwind for
the grilling industry
    ** "We continue to believe in co's long term opportunity
within the broader outdoor cooking space and believe the brand
is well positioned to leverage its technology, innovation, and
strong engagement to continue growing household penetration in
the long term" - RBC
    ** However, brokerage adds, in the medium term, macro
dynamics will continue to pressure household penetration and
likely create further issues with inventories limiting top-line
visibility and likely delaying a margin recover
    ** Up to last close, stock had fallen 76.8% YTD
 (Reporting by Shashwat Chauhan in Bengaluru)
 ((Shashwat.Chauhan@thomsonreuters.com))