Traeger Inc. (COOK) PT Lowered to $5 at Canaccord Genuity

Canaccord Genuity analyst Brian McNamara lowered the price target on Traeger Inc. (NYSE: COOK) to $5.00 (from $7.00) while maintaining a Buy rating.

The analyst commented: "After the market close, Traeger (COOK) reported strong Q4 results with sales ~2% above CG estimates and consensus. Grills were a standout performer once again, +30% y-o-y, significantly above CGe’s +17% and the Street’s +9%. Consumables also came in meaningfully above expectations, and management did not mention private label competition as a headwind this quarter. Accessories, however, disappointed again as incremental marketing funds spent on MEATER did not result in the expected lift in demand. Gross margin was ~50 bps above consensus and expanded by 407 bps y-o-y, which was driven by efficiencies in the supply chain and lower transportation costs. This drove beats to consensus on adjusted EBITDA and EPS. Management believes that the grill market will be flat to +1% to +2% following three years of declines. Guidance came in below expectations, which is not entirely surprising as the company is typically conservative, but also did not include the impact of tariffs, which surprised us. We reiterate our BUY rating but lower our price target to $5 ($7 prior) driven by decreased estimates."

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