Truist analyst Bill Chappell has revised the price target for TreeHouse (THS, Financial), lowering it from $25 to $20. Despite this adjustment, the Hold rating on the stock remains unchanged. According to the analyst, this revision aligns with the company's first-quarter earnings and future guidance. These updates were shared with investors in a recent research note.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Treehouse Foods Inc (THS, Financial) is $23.43 with a high estimate of $26.00 and a low estimate of $20.00. The average target implies an upside of 11.14% from the current price of $21.08. More detailed estimate data can be found on the Treehouse Foods Inc (THS) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, Treehouse Foods Inc's (THS, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Treehouse Foods Inc (THS, Financial) in one year is $45.48, suggesting a upside of 115.75% from the current price of $21.08. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Treehouse Foods Inc (THS) Summary page.
THS Key Business Developments
Release Date: May 06, 2025
- Adjusted Net Sales: Down approximately 3% year-over-year.
- Adjusted EBITDA: $57.5 million, up 25% year-over-year.
- Adjusted EBITDA Margin: 7.2%, up 160 basis points compared to last year.
- Harris Tea Acquisition Impact: Contributed almost 5% to net sales.
- Pricing Benefit: Approximately 1% due to commodity-related pricing adjustments.
- Free Cash Flow Expectation: At least $130 million for the year.
- Capital Expenditures: Approximately $125 million.
- Net Interest Expense Guidance: $80 million to $90 million.
- Second Quarter Adjusted Net Sales Guidance: $785 million to $800 million.
- Second Quarter Adjusted EBITDA Guidance: $61 million to $71 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Treehouse Foods Inc (THS, Financial) achieved adjusted net sales within their guidance range and adjusted EBITDA above the upper end of their guidance range.
- The company is seeing early returns on their margin improvement plan, which is expected to benefit results in the current year and beyond.
- Treehouse Foods Inc (THS) is making significant progress at their Brantford, Ontario, frozen griddle facility, with all lines running and customer pipelines being filled.
- Private brands continue to gain market share over national brands, positioning Treehouse Foods Inc (THS) favorably in the market.
- The company has visibility to delivering $250 million of gross supply chain savings through 2027, with recent success in procurement.
Negative Points
- Adjusted net sales were down approximately 3% year-over-year, reflecting challenges in volume and mix.
- The company experienced a decline in private brand unit sales due to consumer pressure and the Easter holiday shift.
- Treehouse Foods Inc (THS) faced a negative impact on net sales from the griddle recall-related returns and the exit from the ready-to-drink business.
- Organic volume and mix are expected to decline approximately 1% year-over-year, driven by margin management actions and the griddle recall.
- The company is dealing with macroeconomic uncertainties and consumer demand pressures, impacting their outlook.
