TreeHouse Foods (THS) Stock Forecast & Price Target

TreeHouse Foods has raised its FY25 sales estimate to reflect a projected 0.5% reported growth, attributed to favorable net impacts. Additionally, the company anticipates a 60 basis points expansion in EBITDA margins, reaching 10.6%, driven by gross margin improvements and effective cost-saving initiatives. Furthermore, the estimated FY25 EBITDA has increased to $359 million, marking a 6% rise and demonstrating solid financial performance ahead of previous projections.

TreeHouse Foods has experienced a decline in private label units by 1.6% in the second quarter, indicating a deceleration in performance and a loss of market share to national brands. Projections for third quarter sales growth remain weak, estimating less than 0.5% growth, with volume expected to decrease nearly 7.5%, primarily driven by adverse factors such as a frozen griddle recall and general soft consumer trends. Despite slight pricing gains and benefits from acquisitions, the overall volume and mix decline, forecasted to be around 6.5%, highlights ongoing operational challenges for the company.