Traeger (COOK) Stock Forecast & Price Target

Traeger Inc. demonstrated a robust performance in Q4 2024, with total sales increasing by 3.2% year-over-year to $168.6 million, significantly outperforming industry peers. The grill segment particularly excelled, with revenues soaring by 30.2%, attributed to higher unit volumes and new product distribution, while the consumables segment also reported a strong 25% growth, bolstered by the addition of Walmart as a retail partner. Despite rising operating expenses, the company's adjusted EBITDA of $18 million surpassed estimates, signaling a healthy operational outlook amidst its ongoing expansion initiatives.

Traeger Inc. is facing a negative outlook due to disappointing financial guidance for 2025, which indicates flat sales between $595 million and $615 million and an anticipated contraction in adjusted EBITDA margin to 12.3%. The company projects a year-over-year decline in overall sales for Q1 2025, primarily driven by changes in retail orders and uncertainty surrounding tariffs, which may postpone sales from Q1 to Q2. Additional concerns include potential declines in brand relevance and customer attraction, as well as challenges in managing growth and global supply chain disruptions, all of which could adversely impact Traeger's sales and profitability.