WALD Stock Forecast & Price Target

Waldencast PLC reported significant financial improvements, with gross margin expanding over 1,000 basis points year-over-year and an impressive 130% year-over-year increase in adjusted EBITDA, highlighting strong operational performance. The company's total revenue is projected to reach $69.4 million, representing a 26% year-over-year growth, driven largely by the Obagi Medical segment's accelerating revenue growth after improved stock levels and new product launches. Additionally, the Milk Makeup segment experienced a sequential acceleration in topline growth and an expansion in adjusted EBITDA margin, reflecting successful marketing investments and an effective innovation pipeline that enhance brand awareness and consumer engagement.

Waldencast PLC has faced challenges with its Milk Makeup segment, where gross margins were negatively impacted by holiday gift sets and increased off-price sales, leading to a forecasted flat gross margin of 73.1%. There are significant risks associated with the company's products, particularly concerning regulatory challenges regarding hydroquinone, which could necessitate the removal of certain products from the market, thereby affecting sales and profitability. Additionally, ongoing economic uncertainties, competitive pressures within the cosmetics industry, and the overall volatility in consumer spending raise concerns about Waldencast's ability to sustain profitable operations moving forward.