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Traeger downgraded to Neutral from Buy at B. Riley

B. Riley downgraded Traeger (COOK) to Neutral from Buy with a price target of $1.50, down from $3. The company’s grill sales, which represent over 50% of its total revenue, re-inflected negatively in Q2 and the declines are expected to persist through at least Q4, the analyst tells investors in a research note. The firm says Traeger’s price-takes benefits in response to tariffs is being more than offset by the resulting negative impact to volume. It believes the company needs to show a sustained sales recovery for the shares to break out beyond their multi-year $2-$3 average. Riley sees limited catalysts for a sales recovery in the next six months.

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