Traeger slumps to record low after warning of soft demand for grills
08/03/2024 15:06
** Traeger Inc's COOK.N shares slump 15.3% to record
intraday low $2 early Fri after wood pellet grill maker's qtrly
report disappoints
** "..we anticipate that consumer demand for grills will
remain soft in 2024," CEO Jeremy Andrus said in statement late
Thurs
** Andrus added co expects to grow adj EBITDA driven by
expected gross margin expansion
** Co posted Q4 rev of $163.5 mln, up ~18% yr/yr, topping
LSEG est of $153.9 mln, while adj loss/sh of 8 cents was wider
than 5 cents/sh loss analysts expected
** Jefferies reiterates "hold" rating, cuts PT from $4 to
$3.05, pointing out co's 2024 rev forecast of $580-$605 mln was
shy of consensus view of $608 mln
** RBC cuts PT from $3.50 to Street-low $2, per LSEG, while
Telsey Advisory Group trims PT from $5 to $4.50
** Avg rating among 10 analysts is "hold", including 4 "buy"
recommendations, 5 "hold" and 1 "sell"; median PT is $3.50
** COOK last off 12.3% at $2.07. Stock now down 24% YTD and
has shed about 45% over the past 12 months
(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))