PBH Stock Forecast & Price Target

Prestige Consumer Healthcare's diverse portfolio, which includes category-leading brands such as Clear Eyes and Dramamine, positions the company to capitalize on strong demand in the over-the-counter healthcare market. The forecast for Q1/25 indicates a revenue increase of 13.2% to $7,322 million and an adjusted EBITDA growth of 16.3% to $690 million, demonstrating robust financial performance potential. Additionally, management has indicated anticipated acceleration in organic volume growth for Specialty Foods in H2/25, supported by significant product launches, which will further enhance the firm's market presence and profitability.

Prestige Consumer Healthcare is facing a negative outlook primarily due to adjusted EBITDA margins decreasing to 9.1%, which is 38 basis points lower year-over-year and below estimates, largely attributed to raw material cost inflation and challenges from recent acquisitions. Additionally, a downside scenario considers factors such as lower-than-expected revenue growth and further EBITDA margin compression, expected to result in a valuation drop due to a 2.0x EV/EBITDA multiple compression. The company’s consolidated adjusted EBITDA margins also declined to 8.1%, 15 basis points lower than projected, indicating ongoing operational pressures that may affect financial stability moving forward.