TreeHouse Foods (THS) Stock Forecast & Price Target

TreeHouse Foods is experiencing a positive financial outlook, highlighted by a revised fiscal year 2025 sales estimate reflecting a modest growth of 0.5%. The company is also projected to achieve an EBITDA of $359 million, representing a 6% increase from previous estimates, driven by a combination of cost savings and expected gross margin expansion. Additionally, TreeHouse Foods anticipates a 60 basis points increase in EBITDA margin, reaching 10.6%, underscoring effective cost management strategies that enhance profitability.

TreeHouse Foods reported a decline of 1.6% in private label units during the second quarter, indicating a deceleration in growth and a loss of market share to national brands. Projections for Q3 2025 suggest sales growth will be under 0.5% amidst a 7.5% drop in volume, despite pricing improvements and contributions from acquisitions. The company's challenges are further exacerbated by factors such as a frozen griddle recall, margin management actions, and weak consumer trends, which indicate ongoing struggles in volume and mix.