Weber IPO Stock Is a Good Long-Term Buy, Company Is Already Profitable
Weber Grills IPO stock is about to make its public market debut. Investors want to know whether they should buy WEBR stock. What can they expect long-term?
July 28 2021, Published 8:26 a.m. ET
Weber Grills, a leading maker of grills, is going public. The company announced its IPO terms and disclosed the pricing range and the deal size. When is Weber's IPO date and should you buy Weber IPO stock? Here's what we know about the company as well as its long-term outlook.
Weber is a leading brand of grilling equipment and accessories. Its products include charcoal grills, electric grills, and gas grills. The company sells its products in the U.S. and overseas with a strong presence in key international markets. Weber tapped investment banks including Goldman Sachs, Wells Fargo, and Bank of America to prepare it for the IPO.
Weber Grills IPO date
Weber made its IPO filing with the SEC on July 12. It set the IPO terms on July 27. Weber IPO stock is expected to start trading between Aug. 2 and Aug. 6. The stock will trade under the ticker symbol “WEBR.”
Weber Grills IPO stock pricing and valuation
The company plans to price its IPO stock between $15 and $17. The midpoint of the pricing range suggests a valuation of $4.7 billion. Weber plans to sell 46.9 million shares. It could sell an additional 7 million shares if the demand for the stock exceeds the expectations.
Should you buy Weber Grills IPO stock?
Weber is going public as an already profitable business, which makes it a rare IPO breed. In the fiscal year ended September 2020, Weber reported revenue of $1.5 billion, which increased from $1.3 billion in the previous year. The profit came in at $88.9 million and grew from $50.1 million in the previous year. Does the company have more room to grow?
For the three months ended June 2021, Weber’s revenue grew to $676 million from $662 million. The profit jumped to $49.3 million from $27.6 million in the same period a year ago.
Weber Grills stock forecast
Although Weber is already a strong brand in the grills market, it has more room to grow. Its U.S. market opportunity is estimated at $9 billion and the global opportunity at $49 billion.
Is Weber stock a good long-term investment?
Weber holds a strong position in many key markets. Its market share in the U.S. is 24 percent. The company controls a 30 percent share of the Australian market and a 44 percent share of the German market. Weber’s global market share stands at 24 percent. The company's current success as well as its solid outlook and growth potential make it a good long-term investment for investors.
The increasing focus on health and wellness as well as the growing adoption of outdoor lifestyles bode well for Weber’s business. The company noted in its IPO filing with the SEC that the COVID-19 pandemic accelerated some trends that are favorable to its industry.