TD Cowen analyst Jonna Kim maintained a Hold rating on Waldencast Acquisition (WALD – Research Report) today and set a price target of $3.40.
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Jonna Kim has given his Hold rating due to a combination of factors influencing Waldencast Acquisition’s current market position. The company’s guidance for fiscal year 2025 and the first quarter of 2025 fell short of expectations, suggesting potential challenges in the near term. Despite this, there is a belief that the momentum across Waldencast’s brands remains strong, supported by innovation and effective marketing strategies.
While the first half of 2025 is anticipated to be difficult, particularly in the beauty sector, the latter half of the year is expected to be more favorable. The company’s management has projected flat sales for the first quarter of 2025, with improvements anticipated as the year progresses. Although there is a conservative outlook, there remains a risk associated with the back half-weighted guidance due to macroeconomic uncertainties. Nevertheless, Waldencast is seen as well-positioned to generate positive free cash flow, and its growth potential is acknowledged, leading to a moderated price target of $3.40.