TreeHouse Foods (THS) Stock Forecast & Price Target

TreeHouse Foods has raised its FY25 sales estimate to reflect a reported growth of 0.5%, indicating a positive trajectory in revenue generation. The company anticipates an EBITDA of $359 million for FY25, representing a 6% increase, attributed to effective cost savings and gross margin improvements. Additionally, TreeHouse Foods is projected to achieve a 60 basis points expansion in EBITDA margin, reaching 10.6%, further substantiating its solid financial outlook.

TreeHouse Foods has experienced a significant decline in private label units, with a reported decrease of 1.6% in the second quarter, highlighting a loss of market share to national brands. Projections for 3Q25 indicate less than 0.5% sales growth, driven by a nearly 7.5% fall in volume, despite a 4% increase in pricing and a modest contribution from recent acquisitions and divestitures. Overall, the company faces challenges from declining volume and weak consumer trends, which are further exacerbated by margin management actions and product recalls, leading to a negative outlook for its financial performance.