Traeger shares fire up after Canaccord says "buy"
17/11/2022 15:20
** Shares of wood pellet grill maker Traeger Inc COOK.N up
5.9% at $4.10 after Canaccord Genuity initiates with "buy"
rating. Stock jumps as much as 16.3% to $4.50 in early trade
** Brokerage sets PT at $6, implying 55% upside to stock's
Weds close
** Given premium brand with mass market appeal, COOK should
continue to benefit from secular disruption of outdoor grilling
category, Canaccord analyst Brian McNamara wrote in note
** While recession probability remains high, a Traeger
household is higher income and the brand less reliant on
replacement demand than peers, he said
** McNamara added after checking 150 Home Depot HD.N
stores, channel inventories are "much healthier" than expected,
Traegers almost “never” go on sale, and co "punching above its
weight," which bodes well for future shelf space growth
** COOK's shares last Thurs fell 8.1% to $3.41 after co cut
its FY22 revenue outlook as retailers look to reduce inventories
** With move on the session, shares down ~66% YTD and well
below Jul 2021 IPO price of $18
(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))