In a report released yesterday, Matthew Smith, CFA from Stifel Nicolaus maintained a Hold rating on TreeHouse Foods (THS – Research Report), with a price target of $35.00.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Matthew Smith, CFA has given his Hold rating due to a combination of factors affecting TreeHouse Foods. The company reported a fourth-quarter performance aligned with expectations, with a modest increase in underlying volumes and a growth in EBITDA. However, the impact of a frozen griddle recall resulted in a slight drag on revenue, although recovery efforts are underway. The focus on improving margin structure amidst a challenging volume environment is seen favorably, but there are concerns about carryover costs affecting short-term financial performance.
TreeHouse’s guidance for 2025 suggests a narrow range for net sales growth and EBITDA, with adjustments made to estimates reflecting ongoing recovery costs. The company’s emphasis on supply chain efficiency and margin management over volume growth is viewed positively, but there remains caution due to potential execution risks. The valuation of the stock, balancing cost-saving initiatives and market challenges, supports the continuation of the Hold rating with a target price of $35.
In another report released on February 14, Mizuho Securities also maintained a Hold rating on the stock with a $35.00 price target.