Traeger (COOK) Stock Forecast & Price Target

Traeger Inc. demonstrated a positive performance with total sales increasing by 2.7% to $125.4 million, primarily driven by a 12.3% rise in consumable sales, particularly in wood pellets. North American sales grew 2.1%, and the company successfully implemented price increases earlier in the year, contributing to better average unit revenue (AUR) despite a decline in grill unit sales. Additionally, the Rest of World segment showed robust growth of 9.9%, suggesting potential for future expansion amid evolving consumer trends.

Traeger Inc. is facing a negative outlook primarily due to an anticipated decline in adjusted EBITDA, projected to decrease slightly in the third quarter of 2025 and significantly throughout the year, driven by tariffs and decreasing consumer demand for discretionary products amidst elevated pricing. The company has reiterated its guidance for 2025, forecasting a sales decline of 8%-11%, with expected revenues of $540 million to $555 million, reflecting a considerable contraction in multiple segments, particularly in premium grills and accessories. Additionally, gross margin compression is anticipated at 70 basis points, primarily impacted by higher sales of grills and the additional costs related to tariffs.