Traeger stock price target lowered to $1.75 at Telsey on weak sales

Published 07/08/2025, 11:10
Traeger stock price target lowered to $1.75 at Telsey on weak sales

Investing.com - Telsey lowered its price target on Traeger Inc. (NYSE:COOK) to $1.75 from $2.00 while maintaining a Market Perform rating after the company’s second-quarter results missed expectations. The stock, which has declined over 28% in the past six months according to InvestingPro data, currently trades below its Fair Value, suggesting potential upside opportunity.

The grill maker reported a 13.6% sales decline in Q2 2025, significantly worse than Telsey’s forecast of a 0.2% drop and the FactSet consensus estimate of a 1.2% decrease. EBITDA came in at $14.3 million, below Telsey’s expectation of $23.3 million and FactSet’s $24 million projection. InvestingPro data shows the company maintains a healthy current ratio of 2.21, indicating strong ability to meet short-term obligations despite recent challenges.

Traeger attributed the disappointing performance to timing shifts in wholesale order deliveries due to tariffs and lower direct-to-consumer sales following April price increases. The company noted that unit sales at retail during the key summer season increased year-over-year as consumers responded to seasonal promotions.

With greater clarity on tariff rates, Traeger reinstated its full-year guidance, now projecting an 8-11% sales decline for 2025, worse than the FactSet consensus of a 2% drop. The company expects price increases to result in fewer units sold throughout the year.

Traeger is prioritizing profitability and efficiency through a streamlining initiative called Project Gravity, which supports its 2025 EBITDA guidance range of $66 million to $73 million, compared to the FactSet consensus of $69 million.

In other recent news, Traeger Inc. reported its financial results for the second quarter of 2025, revealing a significant miss in both earnings and revenue forecasts. The company posted an earnings per share of -$0.01, which was below the expected $0.05, marking a 120% negative surprise. Revenue was reported at $145.5 million, falling short of the forecasted $166.49 million, resulting in a 12.61% shortfall. Despite these results, the company’s stock price remained stable in aftermarket trading. These recent developments highlight the challenges Traeger Inc. is currently facing in meeting market expectations.

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