Initiation Traeger Inc | Guillaume Blair


William Blair kicked off the research cover of Traeger, Inc. (COOK $ 25.78), the creator and category leader of wood pellet grills. Traeger also offers additional accessories and consumables.

Analyst Sharon Zackfia estimates the company could generate revenue growth of over 20% and EPS growth of over 30% through 2024. It forecasts revenue of 754.3 million of dollars and EPS of $ 0.26 for 2021, and revenue of $ 945.9 million and EPS of $ 0.56 for 2022..

“The Traeger brand is all about its connected wood-fired barbecues,” Zackfia said, “with patented technology that creates a semi-automated cooking process offering impressive consistency and ease of use, making its customers site managers. Traeger’s appeal to consumers is exemplified by the company’s more than four-fold increase in sales between 2015 and 2020 and the evangelical brand affinity of its customers, known as “Traegerhood”. Yet despite a nationally installed grill base of around 2 million, unassisted Traeger brand awareness remains low at 11%, providing a highly visible path to gaining more share as brand awareness grows through to increased marketing at the top of the funnel. Additionally, we believe Traeger can quickly grow domestic sales without the need for new retail doors as its existing retail partners already have a significant presence in low brand awareness areas to the east. of Mississippi. Additionally, Traeger is starting to invest more heavily in adjacent consumable categories such as sauces and rubs, and has recently entered the grocery channel. While increasing brand awareness and leveraging its domestic sales opportunities will account for the bulk of the growth through 2024, we also believe that Traeger has a significant opportunity outside of the United States. , with only 3% of international sales in 2020. ”

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Breakdown of current scores (at 08/22/21)

Coverage universe
Outperform (Buy): 76%
Market Performance (Hold): 24%
Underperform (Sell): 1%

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Outperform (Buy): 31%
Market performance (keep): 13%
Underperform (Sell): 0%

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