In a report released yesterday, Brian McNamara from Canaccord Genuity maintained a Buy rating on Traeger, with a price target of $3.00.
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Brian McNamara has given his Buy rating due to a combination of factors that highlight Traeger’s strategic positioning and potential for growth. One of the key reasons is the company’s proactive approach to managing tariffs, which, despite causing short-term volatility, could lead to industry consolidation in the long term. Traeger’s efforts in price increases, supply chain optimization, and cost management through Project Gravity are expected to yield significant cost savings. Additionally, the company’s performance in Q2 met or exceeded expectations, with unit volume sell-through showing year-over-year growth, indicating consumer interest in value and lower price points.
Furthermore, McNamara notes the potential for a replacement cycle, with Traeger being well-positioned to capitalize on pent-up demand as the industry recovers from pandemic impacts. The company’s focus on consumer education and brand penetration, particularly in regions with lower awareness, is seen as a vital strategy to outperform the industry. Despite challenges from low-cost competitors, particularly in the MEATER segment, Traeger’s integration efforts and focus on deleveraging through EBITDA growth and free cash flow are viewed positively. These strategic initiatives, coupled with a strong brand loyalty, underpin McNamara’s optimistic outlook for Traeger’s stock.
COOK’s price has also changed dramatically for the past six months – from $2.460 to $1.360, which is a -44.72% drop .