Traeger’s Q1 Sales Drop 34.3% to $94.1M, Price Target Raised to $45
COOK•Telsey Advisory raised its price target for Traeger to $45.00 from $43.00, implying 2.24% upside, while maintaining a Market Perform rating. Traeger’s Q1 revenue fell 34.3% to $94.1M with grill sales down 45.4%, but earnings beat expectations at $1.49 per share and free cash flow reached $14.5M.
1. Analyst Update
Telsey Advisory increased its price target for Traeger from $43.00 to $45.00 and retained a Market Perform rating, indicating an expected 2.24% upside and confidence in the company’s strategic direction.
2. Q1 Revenue Decline
Traeger reported first-quarter revenue of $94.1 million, a 34.3% year-over-year decline, with grill sales plunging 45.4% to $47.4 million as the company executed strategic channel adjustments.
3. Earnings and Cash Flow
The company delivered earnings of $1.49 per share, substantially surpassing a forecasted $2.70 loss, while generating $17.3 million in adjusted EBITDA and $14.5 million in free cash flow through cost reductions.
4. Market Outlook
CEO Jeremy Andrus highlights sell-through rates above expectations as evidence of strong underlying consumer demand, positioning Traeger for its peak selling season and potential future growth.
