Aug. 13 at 5:37 PM
B. Riley downgraded Traeger Inc to Neutral from Buy and cut its price target to
$1.50 from
$3, citing a slower-than-expected recovery as tariffs and weak demand hurt sales. Grill sales, over half of revenue, fell 22% YoY in Q2 and are expected to decline through at least Q4 2025. Accessory sales, over 20% of revenue, have posted double-digit drops for four straight quarters and will likely remain weak into late 2025.
While cost cuts under “Project Gravity” could save ~$ 30M annually by 2026, high leverage—nearly 6× LTM EBITDA—limits flexibility. Reduced marketing spend ($ 20M in 2024 vs. $ 58M in 2021) also weighs on growth. B. Riley sees sustained sales recovery as key for COOK to break above its recent
$2–
$3 range.
$COOK $RILY