UBS downgraded Weber ( NYSE: WEBR ) to a Sell rating after having the grill maker set at Neutral.
UBS analyst Arpine Kocharyan and team have concerns about slowing growth.
The firm expects FY23 sales to be down 0.4% or even more due in part to a COVID pull-forward impact. Kocharyan also pointed to data suggesting a slowdown in suburban residential migration as well as a "significant" slowdown in new and existing home sales in a trend that potentially could negatively impact sales for Weber ( WEBR ).
"We revise EBITDA ests for next year to come in at $173M, below ’19 levels, and significantly below Street’s $222M. We model sales -0.4% for ’23, however, we could see top line declining further.”
UBS assigned a price target of $4 to WEBR vs. the prior PT of $8 and average analyst price target of $5.93.
Shares of WEBR fell 2.67% in premarket trading on Monday to $6.20.
Weber ( WEBR ) is expected to post second quarter earnings in the next few weeks.
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Weber falls after UBS warns that grill sales could disappoint