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On Friday, Jefferies analyst Randal J. Konik adjusted the price target for Traeger Inc. (NYSE:COOK) shares, lowering it to $2.25 from the previous $2.75. Despite the reduction, Konik has maintained a Hold rating on the company’s stock. The adjustment follows Traeger’s fourth-quarter results, which surpassed Wall Street estimates for both revenue and earnings. The positive performance was attributed to another robust quarter for the company’s Grill sales and enhanced profitability. According to InvestingPro data, Traeger’s current market capitalization stands at $282.1 million, with the stock trading near $2.16, showing signs of being slightly undervalued based on InvestingPro’s Fair Value analysis.
Traeger’s Consumables segment experienced a notable recovery and is expected to benefit from the company’s new distribution deal with Walmart (NYSE:WMT). However, the Accessories division faced challenges, primarily due to decreased sales of the MEATER product. Management at Traeger has provided a cautious outlook, citing market uncertainties that could impact future performance. Despite these concerns, the company is actively managing its operations to drive market share gains. InvestingPro data reveals the company maintains strong liquidity with a current ratio of 1.99, while generating annual revenue of $604.07 million.
Konik’s commentary highlighted the strong sales in the Grills segment and the rebound in Consumables as positive aspects of the quarter. He also noted the strategic distribution partnership with Walmart as a potential growth driver. However, the challenges faced by the Accessories segment and the cautious guidance by management reflect the uncertainties present in the market. While the company wasn’t profitable in the last twelve months, InvestingPro analysts project a return to profitability this year. For deeper insights into Traeger’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
Traeger’s management is focusing on aspects within its control to navigate the market’s unpredictability. The company’s efforts are aimed at continuing to capture market share in a competitive category. Konik reiterated the Hold rating, signaling a neutral stance on the stock, acknowledging the company’s recent performance and market strategy while also considering the broader market risks.
Investors and market watchers will be keeping an eye on Traeger Inc. as it continues to adapt to market conditions and capitalize on its strategic initiatives. The updated price target from Jefferies reflects a recalibrated expectation for the stock’s value in light of the company’s quarterly results and forward-looking strategies.
In other recent news, Traeger Inc. reported its fourth-quarter 2024 earnings, exceeding expectations with an earnings per share (EPS) of $0.01, surpassing the forecast of -$0.0015. The company also reported a revenue of $169 million, marking a 3% increase year-over-year, alongside a significant 41% increase in adjusted EBITDA compared to the previous year. Despite these positive results, the company’s stock experienced a decline, reflecting investor concerns over future guidance and external challenges such as potential tariff impacts. Traeger also announced the launch of a new product line and expansion of retail partnerships, indicating strategic moves to strengthen its market position. The company is preparing for potential tariff impacts and is working on supply chain diversification to mitigate risks. Traeger’s cautious outlook for 2025 includes projected revenue between $595 million and $615 million, with adjusted EBITDA expected to range from $75 million to $85 million. Additionally, Traeger plans to continue its efforts in global market expansion despite the challenges in its international revenue and METER business.
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