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Investing.com - Telsey Advisory Group lowered its price target on Traeger Inc. (NYSE:COOK) to $1.50 from $1.75 while maintaining a Market Perform rating following the company’s third-quarter 2025 results. According to InvestingPro data, Traeger currently trades at $1.01, with technical indicators suggesting the stock is in oversold territory.
Traeger reported better-than-expected performance in the quarter, with sales increasing 2.7% compared to analyst expectations of a 7.0% to 9.0% decline. The company’s EBITDA reached $13.4 million, exceeding forecasts of $10.2 million to $11.6 million.
The grill manufacturer benefited from price increases implemented earlier this year in response to tariffs, along with a shift in wholesale orders from the fourth quarter to the third quarter of 2025. Despite the solid quarterly performance, Traeger maintained its full-year 2025 guidance, projecting revenue to decline 8%-11% and EBITDA to range between $66 million and $73 million. This guidance aligns with InvestingPro data showing an expected 9% revenue decline for fiscal year 2025.
Traeger has launched an efficiency initiative called Project Gravity aimed at reshaping its profit and loss structure. The program prioritizes profitability, efficiency, and organizational streamlining in response to higher costs and reduced consumer demand for big-ticket items. The company maintains a strong current ratio of 2.92 and a healthy gross profit margin of 40.91%, providing financial flexibility as it implements these efficiency measures.
The company continues to see stronger sales performance from its lower-priced grills under $1,000 compared to its higher-priced models as consumers remain price-sensitive in the current economic environment. Despite current challenges, InvestingPro analysis indicates Traeger is undervalued at its current price, with analysts forecasting the company will return to profitability this year. For deeper insights on Traeger and 1,400+ other US stocks, check out InvestingPro’s comprehensive research reports that transform complex data into actionable investment intelligence.
In other recent news, Traeger Inc reported its financial results for the third quarter of 2025, revealing a mixed performance. The company achieved revenue of $125.4 million, which exceeded analyst expectations of $110.66 million, representing a 13.32% surprise. However, Traeger Inc’s earnings per share (EPS) fell short of forecasts, coming in at -$0.17 compared to the anticipated -$0.04, a miss of 325%. Despite the EPS miss, the revenue beat highlights the company’s ability to generate higher-than-expected sales during this period. These results are crucial for investors as they assess the company’s financial health and future prospects. The mixed earnings report suggests a complex financial landscape for Traeger Inc, with both positive and negative signals for stakeholders. Investors may find the revenue growth encouraging, though the significant EPS miss could warrant cautious optimism.
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