William Blair analyst Jon Andersen has maintained their bullish stance on PBH stock, giving a Buy rating on February 13.
Jon Andersen’s rating is based on several compelling factors that highlight Prestige Consumer Healthcare’s potential for growth and value. The company is currently trading at a discount compared to its peers, with a 2025 enterprise-value-to-EBITDA multiple of about 13.5 times, whereas similar companies have multiples in the mid- to upper teens. This discount could narrow due to Prestige’s strong position in the stable OTC consumer healthcare market, its robust brand portfolio, and its impressive EBITDA margins and cash flow capabilities.
Furthermore, Prestige has demonstrated strong financial performance with a consistent EBITDA margin in the mid-30s and free cash flow conversion well above 100% for over a decade. The company is expected to generate $1 billion in free cash flow over the next four years, which is about 25% of its market capitalization. Additionally, Prestige has significantly reduced its debt, providing flexibility for capital allocation, including debt reduction, share buybacks, and mergers and acquisitions. These factors, combined with anticipated organic growth and margin improvements, suggest a positive outlook for shareholder returns.
In another report released on February 13, Oppenheimer also maintained a Buy rating on the stock with a $93.00 price target.
Based on the recent corporate insider activity of 45 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PBH in relation to earlier this year.