WALD Stock Forecast & Price Target

Waldencast PLC demonstrates a positive outlook due to an anticipated revenue increase of 14.8% year-over-year, reaching $72.7 million, which exceeds the consensus estimate of $71.9 million. The company is expected to achieve a gross margin improvement to 75.4%, reflecting operational efficiency alongside the revenue growth across both segments. Additionally, the strong performance in emerging markets, particularly with Obagi Medical's revenue growth in core strategic channels accelerating to mid-teens, highlights the brand's expanding global presence and potential for further growth.

Waldencast PLC's financial outlook appears negative due to a significant year-over-year decline of 15.1% in brand revenue for the Milk Makeup segment, exacerbated by challenging consumption trends and key retailers engaging in destocking efforts. Furthermore, the company has revised its FY25 adjusted EBITDA expectations downward to $36.7 million, indicating a decline from previous estimates, and reflecting lower profit margins than initially projected. Additionally, supply chain issues and tough comparative performance from the Obagi Medical segment contribute to the overall challenging financial environment faced by the company.