Traeger: Telsey Advisory Downgrades to Market Perform, PT to $1.75.

Traeger: Telsey Advisory Downgrades to Market Perform, PT to $1.75.

Telsey Advisory Group has downgraded Traeger Inc. (COOK) to a "Market Perform" rating and reduced its target price to $1.75. The downgrade comes following the company's recent Q2 2025 earnings report, which showed a significant revenue drop and a net loss, signaling market challenges [2].

Traeger reported a sharp Q2 2025 revenue drop of 13.6% to $145.5 million, falling short of the $169.8 million Wall Street expected. The company posted an adjusted net loss of $0.01 per share, compared to a $0.05 profit forecast. The earnings miss was attributed to a combination of tariff pressures, margin compression, and a saturated market [2].

Traeger's stock fell 22% post-earnings, trading at $1.70. The company's low P/E ratio of 5 and ongoing product innovation, such as the Woodridge grill, hint at value potential. However, Traeger's recovery hinges on successful execution of Project Gravity, a $30 million cost-cutting initiative aimed at offsetting tariff costs and streamlining operations [2].

Telsey's downgrade reflects concerns about Traeger's ability to navigate the current market challenges and execute its turnaround plan effectively. The analyst's new target price of $1.75 reflects a more cautious outlook on the company's prospects [2].

References:
[1] https://www.marketbeat.com/instant-alerts/q1-earnings-estimate-for-www-issued-by-telsey-advisory-group-2025-08-01/
[2] https://www.ainvest.com/news/traeger-cook-q2-2025-earnings-strategic-cost-cutting-tariff-pressures-project-gravity-spark-turnaround-2508/