Piper Sandler downgrades Traeger on elevated grill inventory

Piper Sandler downgraded Traeger to Neutral from Overweight with a price target of $4, down from $6, ahead of the Q4 earnings report on Thursday. The firm says elevated grill inventory at retail likely creates a promotional environment in 2023. In addition, Traeger has elevated debt leverage and no meaningful expansion to new retail partners, the analyst tells investors in a research note. Piper also also has concerns on big ticket spending in 2023. Traeger’s fundamentals are likely to remain challenged for the coming quarters with no meaningful catalyst on the horizon, it contends.