TreeHouse Foods (THS) Stock Forecast & Price Target

TreeHouse Foods has demonstrated a positive outlook with an updated sales estimate for FY25 reflecting a reported growth of 0.5%. The company anticipates an EBITDA of $359 million, representing a 6% increase from prior estimates, supported by effective cost-saving measures and a projected 60 basis points expansion in EBITDA margin to 10.6%. This financial performance is expected to be driven by both gross margin improvements and ongoing operational efficiencies, positioning TreeHouse Foods favorably in the market.

TreeHouse Foods has reported a decline of 1.6% in private label unit sales during the second quarter, which indicates a sequential deceleration and a loss of market share to national brands. The projection for third-quarter sales growth remains subdued at less than 0.5%, supported predominantly by a marginal increase in pricing and a gain from the Harris Tea acquisition, while overall volume is expected to decrease by nearly 7.5%. Additionally, challenges such as the impact of a frozen griddle recall, ongoing margin management efforts, and unfavorable consumer trends further compound the company’s financial outlook, leading to an anticipated overall volume decline of almost 6.5% when considering these factors.