Grill maker Weber Inc. (WEBR) recently reported disappointing fourth-quarter results. Its revenues missed Street estimate by 9%, and a loss per share of $0.19 was worse than the $0.12 consensus estimate. In addition, JPMorgan analysts downgraded the stock to Neutral from Overweight. They lowered the price target to $9.50 from $13, citing the uncertainty of a high sale ahead with risk in the second half of 2022 on price elasticity and do-it-yourself "normalization."
The stock has lost 25% over the past three months and is currently trading 45% below its 52-week high of $20.44, which it hit on August 10, 2021. Moreover, the inflationary headwinds and supply chain challenges make the company’s near-term prospects bleak.
