Monday was a fine workday for a barbecue, at least for shareholders of pellet grill maker Traeger (COOK -3.36%). The company's stock leaped more than 9% higher on the day, stoked by a clutch of bullish new analyst recommendations.
Less than a month after its successful initial public offering (IPO), Traeger was blasted with several fresh coverage initiations on Monday.
These were overwhelmingly positive. Stifel, Piper Sandler, Royal Bank of Canada's RBC Capital, Baird, Jefferies, Credit Suisse, and Telsey all recommended the stock as a buy (or the equivalent thereof). Their price targets ranged from $29 to $36 per share.
The various analysts entering the bullpen saw numerous pluses in Traeger's business model.
For example, RBC Capital's Nik Modi wrote that, "We estimate the company can compound its top-line at a 25% rate over the next five years driven by a combination of societal tailwinds (more cooking at home/growing share of wood pellet grills, food as an experience), strong social media presence (which serves as an effective brand awareness tool), and consumer preferred products."
One slightly less sunny analysis came from Morgan Stanley prognosticator John Glass, who believes the stock is only worthy of an "equal weight" (i.e., neutral) recommendation at a price target of $28. At the current share price, Glass feels that while the current optimism swirling around Traeger is justified, it's already priced into the stock.