Analyst Robert Moskow from TD Cowen maintained a Hold rating on TreeHouse Foods (THS – Research Report) and decreased the price target to $27.00 from $32.00.
Robert Moskow has given his Hold rating due to a combination of factors including TreeHouse Foods’ recent organizational restructuring and cost-saving measures. The company announced the elimination of 150 roles and the Chief Commercial Officer position, aiming to align its cost structure more closely with private peers. While these changes are expected to result in first-quarter sales meeting the midpoint of their guidance and EBITDA exceeding expectations, the overall sales estimate remains at the lower end of projections.
Despite an increase in the EBITDA estimate for 2025, Moskow adjusted the price target downward to $27 per share, reflecting a broader decline in valuations within the packaged food sector. This revised target is based on a 7.0x EV/EBITDA multiple for the 2026 EBITDA estimate, which Moskow considers appropriate for TreeHouse’s business model focused on supply chain and unbranded products.