Traeger (COOK) Stock Forecast & Price Target

Traeger Inc. demonstrated a resilient performance, with total sales increasing by 2.7% to $125.4 million, largely driven by a 12.3% rise in consumables, particularly wood pellets. The company's North American sales grew by 2.1%, reflecting robust consumer demand despite challenges such as unit declines and a transitional wholesale order strategy. Additionally, the price increases implemented in response to tariffs have contributed positively to revenue, indicating Traeger's ability to adapt to market conditions effectively.

Traeger Inc. faces a negative financial outlook, driven by anticipated declines in adjusted EBITDA of 3Q25 and significantly in 2025, primarily due to tariffs and decreasing consumer demand for discretionary products amid elevated pricing. The company's guidance indicates a projected sales decline of 8%-11% for 2025, with low-end revenue expectations of $540 million to $555 million and weak performance across major categories, notably a 10.3% decrease in grill sales attributed to high prices. Additionally, gross margin compression is forecasted at 70 basis points, reflecting increased costs due to tariffs coupled with higher sales proportions from grilling products, further intensifying the negative financial trajectory.