COOK - Traeger stock tumbles on RBC downgrade

Traeger ( NYSE: COOK ) stock fell 8.69% on Tuesday after RBC Capital Markets analyst Nik Modi moved his rating to Hold-equivalent.

“We continue to believe in Traeger's long term opportunity within the broader outdoor cooking space and believe the brand is well positioned to leverage its technology, innovation, and strong engagement to continue growing household penetration in the long term,” Modi told clients. “However, in the medium term, we believe macro dynamics will continue to pressure household penetration and likely create further issues with inventories limiting top- line visibility and likely delaying a margin recovery.”

He added the margin recovery will “not necessarily [be] a linear process” after the delay. As such, he reduced his rating to Sector Perform from Outperform and reduced his price target to $3 from $4.

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