Weber drops as UBS turns bearish, halves PT on declining grill sales
01/08/2022 14:58
** Shares of Weber Inc WEBR.N down 2.3% at $6.23 early Mon
after UBS downgrades barbecue grill maker to "sell", slashes PT
to $4 from $8
** UBS says FY 2023 could be year of further readjustment in
demand after sizable sales pull-forward during COVID-19 pandemic
** "We are modeling sales to come in down -0.4% in '23, and
we could see actual demand coming in worse than that," UBS says
in note
** Brokerage estimates >60% of sales for WEBR during COVID
(FY '20 and '21) were replacement sales, and in FY '20 >70% were
replacements
** UBS says revises 2023 EBITDA est to $173 mln, below 2019
levels, and well below Street's $222 mln
** WEBR's stock last Mon sunk 12.7% to $6.56 after co
replaced its CEO, warned of layoffs and withdrew 2022 forecast,
citing mounting inflation and geopolitical uncertainty
urn:newsml:reuters.com:*:nL4N2Z62G1
** On Jul 20, wood pellet grill maker Traeger Inc COOK.N
said it was cutting jobs, suspending operations at its meal-kit
service and postponing plans to manufacture products in Mexico
to help reduce costs urn:newsml:reuters.com:*:nL4N2Z12ZW
** Shares of COOK off 3.1% on Mon
** With moves on the session, WEBR's stock has lost ~53%
YTD, while COOK's shares have sunk ~76%
(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))