On Monday, B.Riley maintained a Buy rating on Traeger Inc. (NYSE: COOK) with a price target of $3.50. The firm's position comes after a virtual non-deal roadshow (NDR) held last Thursday with Traeger's CEO Jeremy Andrus, CFO Dominic Blosil, and VP of IR Nick Bacchus.
During the event, discussions focused on the current phase of the grilling cycle, confidence in the company's 2024 guidance, and the extent to which third-quarter insights have been factored into current financial models.
The analyst from B.Riley highlighted the short-term interest of investors in understanding Traeger's market position and future expectations. The company's long-term growth prospects were noted as being tied to increased household penetration. Additionally, the potential for EBITDA improvement was emphasized as a critical factor for enhancing the company's leverage profile and broadening its investor base.
The firm also pointed out the significance of Traeger's enhanced product placement in Home Depot (NYSE:HD) stores. This strategy was identified as a key opportunity for growth and a strong sign of the brand's health. The analyst's reiteration of the Buy rating and the $3.50 price target reflects a positive outlook on the company's strategic initiatives and market opportunities.
Traeger's management team provided insights into the company's strategic direction during the NDR, addressing investor queries regarding the year's financial performance and future prospects.
The analyst from B.Riley conveyed a positive stance on the company's trajectory, supported by strategic merchandising efforts and a focus on EBITDA growth.
InvestingPro Insights
For investors considering B.Riley's outlook on Traeger Inc. (NYSE: COOK), real-time data from InvestingPro provides additional context to gauge the company's performance. With a market capitalization of approximately $283.51 million, Traeger's valuation metrics show a negative P/E ratio of -3.51, reflecting the challenges the company faces in achieving profitability. Despite this, an InvestingPro Tip indicates that analysts have recently revised their earnings upwards for the upcoming period, suggesting a potential shift in the company's financial trajectory.
Moreover, Traeger's revenue has seen a modest growth of 2.1% over the last twelve months as of Q1 2024, while the gross profit margin stands at a healthy 38.6%. These figures may align with the strategic initiatives and EBITDA improvement highlighted by B.Riley. However, it's worth noting that the company's stock price has experienced a significant decline of 35.48% over the past year, underscoring the importance of the company's future strategies to regain investor confidence.
Investors seeking a more comprehensive analysis can find additional InvestingPro Tips, including insights on the company's free cash flow yield and liquidity position, which could influence investment decisions. For those interested, there are 5 more InvestingPro Tips available, providing a deeper dive into Traeger's financial health and market potential. To access these insights and optimize your investment strategy, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.