COOK - Traeger is in freefall after wave of downgrades citing outlook into question

Traeger (NYSE:COOK) fell 16% premarket after its guidance lands below the consensus mark followed by a series of downgrades from Wall Street analysts on Thursday. In fourth-quarter earnings, Traeger said it expects its FY22 revenue to range between $800-$850M that compares to consensus of $954.77M. The revenue outlook range for 1Q22 is set to $208-$212M vs. $255.27M consensus. Adjusted EBITDA is projected to $70-$80M for the full-year and $22-$24M for Q1. The grill company blamed gross margin pressures due to the worsening supply chain headwinds. Jeffries lowered its rating to Hold from Buy with a price target of $7, down from $25, while Piper Sandler cut to $10 from prior target of $17. Stifel downgraded Traeger's stock to Hold from Buy also cutting target price to $7.50 from previous $26. That suggests a potential downside of 14.7% from the stock's last close. "Declining grill revenue in combination with supply chain/logistics related margin pressure weigh heavily

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Traeger is in freefall after wave of downgrades citing outlook into question