TreeHouse Foods (THS) Stock Forecast & Price Target

TreeHouse Foods has raised its FY25 sales estimate, projecting a reported growth of 0.5%, which indicates a positive trend in the company's revenue performance. Furthermore, the company expects a 60 basis point expansion in EBITDA margin, reaching 10.6%, driven by gross margin enhancements and ongoing cost savings initiatives. The anticipated FY25 EBITDA is estimated at $359 million, reflecting a 6% increase from previous forecasts, demonstrating an optimistic outlook for the company's financial health.

TreeHouse Foods is experiencing a decline in private label units, with a reported decrease of 1.6% in the second quarter, indicating a loss of market share to national brands. Despite benefiting from pricing increases and acquisitions, the company projects less than 0.5% sales growth for 3Q25, compounding challenges from a significant volume drop of nearly 7.5% attributed to factors such as product recalls and weak consumer trends. Overall, the anticipated decline in volume/mix by nearly 6.5% further underscores the pressures facing TreeHouse Foods, suggesting a lack of momentum and stabilizing growth potential.