Robert Moskow, an analyst from TD Cowen, maintained the Hold rating on TreeHouse Foods. The associated price target is $22.50.
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Robert Moskow has given his Hold rating due to a combination of factors influencing TreeHouse Foods’ current market position. The company has announced a sale agreement to Investindustrial at $22.50 per share, which represents a significant premium over previous market speculation. However, the competitive nature of the private label industry and TreeHouse’s recent financial performance, with sales and EBITDA falling short of expectations, suggest limited potential for competing bids.
Additionally, the transaction has been approved by TreeHouse’s Board and is supported by major shareholders, indicating a likely closure in the first quarter of 2026. The valuation of the deal at an 8.3x EV/EBITDA multiple reflects the challenges the company faces. Furthermore, the ongoing litigation with Green Mountain Coffee Roasters adds uncertainty, as any potential recovery from the lawsuit remains speculative. These elements collectively justify the Hold rating, as they imply a balanced risk-reward scenario for investors.
In another report released today, Barclays also maintained a Hold rating on the stock with a $21.00 price target.