TreeHouse Foods (THS) Stock Forecast & Price Target

TreeHouse Foods has raised its fiscal year 2025 sales estimate, projecting a reported growth of 0.5% driven primarily by positive market dynamics. Additionally, the company anticipates a 60 basis points expansion in EBITDA margin, reaching 10.6%, primarily resulting from gross margin expansion and effective cost-saving measures. Furthermore, the estimated EBITDA for FY25 is projected to be $359 million, representing a 6% increase, indicating a positive trajectory for the company's financial performance.

TreeHouse Foods has encountered a decline in private label units by 1.6% in the second quarter, which has led to a decrease in market share against national brands. Forecasted sales growth for the third quarter of 2025 remains bleak, anticipated at less than 0.5% with a significant volume drop of nearly 7.5%, despite a slight increase in pricing by 4%. Additionally, the overall volume and mix are expected to decline nearly 6.5% due to various challenges, including a product recall, margin management issues, and weakened consumer trends, all of which reflect the company's deteriorating performance in the competitive landscape.