COOK - Traeger: Waiting For Things To Heat Up (Rating Downgrade)

2024-04-16 02:16:49 ET

Summary

• Traeger and its grills are synonymous with wood pellet grilling.
• The company's 2022 turnaround plan has been insufficient to turn around the business. 2024 looks to be another disappointing year.
• There is always the risk of a takeover, since Traeger's issues have to do with its cost structure.
• I am downgrading COOK to a hold for now.

The last time I reviewed Traeger, Inc. ( COOK ) was more than a year ago. At the time, I suggested there might be value in Traeger's stock, as a competitor, Weber Inc., was taken private in a private equity buyout at an attractive valuation and there were rumours Traeger might follow suit....

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