By Michael Dabaie
Shares of Traeger Inc. were up 7%, to $ 26.70 on Monday afternoon after analysts looked at the grill maker, which was made public earlier this summer.
Baird launched the Salt Lake City pellet grill maker at “Outperform.” “With the pioneering brand of wood pellet grill, high affinity / low brand awareness and a passionate community of advocates, Traeger …
Baird pointed out that Traeger grills are connected to the cloud and owners can control them through the Traeger app, an Apple Watch, or their voice. Combined with exclusive cooking content like recipes and courses and consumables like Traeger-branded granules, rubs and sauces, “purchasing a Traeger triggers a repeat pledge / purchase wheel and a strong advocacy for the brand, ”Baird said.
Piper Sandler started out at “Overweight”. Traeger’s total addressable market is made up of the 75 million homes that currently own a grill, of which it has a 3% market share, Piper Sandler said. “While Traeger has a substantial opportunity to increase his share across the United States, he has a particularly significant opportunity in the densely populated eastern United States, where brand awareness is still
William Blair said he believes Traeger can quickly increase domestic sales without the need for new retail doors because his existing retail partners already have a significant presence east of the Mississippi.
“While increasing brand awareness and executing its domestic sales opportunity will account for the bulk of growth through 2024, we also believe Traeger has a significant opportunity outside of the United States,” with only 3% of international sales in 2020 (against 47% for Weber) “, indicated the firm in its note. William Blair initiated in” Outperform “.
Stifel, who initiated “Buy”, called Traeger an innovator positioned at the intersection of age-old tailwinds.
“Consumer interest in the outdoors and the growth of food culture has been accelerated by the pandemic, and we believe Traeger is uniquely positioned at the intersection of these age-old trends,” Stifel said.
Stifel said he believes the company can support 20% growth in revenue and 30% in earnings before interest, taxes, depreciation and amortization until 2025 and sees the potential for shares to double in three years.
Write to Michael Dabaie at [email protected]