PBH Stock Forecast & Price Target

Prestige Consumer Healthcare, a leading player in the over-the-counter healthcare market, has reported notable projections for Q1/25, forecasting revenues of $7,322 million, representing a 13.2% increase, alongside an adjusted EBITDA of $690 million, reflecting a robust 16.3% growth. The firm's margin is expected to improve by 25 basis points to 9.4%, demonstrating enhanced operational efficiency despite a challenging market environment characterized by flat organic volume growth. Prestige’s diversified portfolio and strong brand positioning in niche health categories support its resilience and positive financial outlook, ultimately highlighting the potential for sustained growth and profitability.

Prestige Consumer Healthcare has experienced a decline in adjusted EBITDA margins, which stood at 9.1%, reflecting a decrease of 38 basis points year-over-year and falling short of expectations of 9.6%. This downturn is attributed to raw material cost inflation and challenges related to recent acquisitions, which are anticipated to negatively impact margins over several quarters. Additionally, a downside scenario suggests that lower-than-expected revenue growth, along with EBITDA margin compression from rising input costs, may further strain financial performance, potentially leading to multiple compression in valuation metrics.