TreeHouse Foods (THS) Stock Forecast & Price Target

TreeHouse Foods is experiencing a positive financial outlook, with a raised FY25 sales estimate indicating an expected reported growth of 0.5%. The company anticipates a 60 basis point expansion in EBITDA margins to 10.6% driven by both gross margin improvements and effective cost-saving measures. Furthermore, FY25 EBITDA is projected to reach $359 million, reflecting a 6% increase and a $4 million uplift from prior estimates, demonstrating robust operational performance.

TreeHouse Foods has experienced a troubling decline in private label unit sales, with a decrease of 1.6% in the second quarter and a significant loss of market share to national brands, indicating weak competitive positioning. Furthermore, the anticipated sales growth for the third quarter of 2025 remains below 0.5%, driven primarily by a marked volume decline of nearly 7.5%, despite a pricing increase of 4% and contributions from recent acquisitions. These challenges, compounded by issues such as product recalls, margin management, and unfavorable consumer trends, suggest persistent operational difficulties that may adversely affect the company's financial performance.