TreeHouse Foods (THS) Stock Forecast & Price Target

TreeHouse Foods has demonstrated a positive outlook with an increase in its FY25 sales estimates, projecting a reported growth of 0.5% driven by strategic business focus. The company is expected to achieve an EBITDA of $359 million, reflecting a 6% increase from previous estimates, coupled with a notable 60 basis points expansion in EBITDA margin to 10.6%, attributed to cost-saving initiatives and slight gross margin improvement. This financial outlook underscores TreeHouse Foods's commitment to growth in high-margin sectors while maintaining operational efficiencies, positioning it favorably in the competitive private-label market.

TreeHouse Foods is experiencing a decline in private label unit sales, with a reported decrease of 1.6% in the second quarter, indicating a loss of market share to national brands. Despite anticipated sales growth of less than 0.5% for the third quarter of 2025, volume is projected to decrease by nearly 7.5%, raising concerns about the company's ability to maintain profitability amid these challenges. Contributing factors include issues related to product recalls, unfavorable consumer trends, and increasing pricing that may not sufficiently offset the decline in volume and mix preference for its offerings.