Waldencast Acquisition (WALD – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Jonna Kim from TD Cowen maintained a Hold rating on the stock and has a $2.40 price target.
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Jonna Kim has given his Hold rating due to a combination of factors impacting Waldencast Acquisition’s performance. The company has experienced weaker-than-expected results in the first quarter of 2025, primarily due to stockouts at Obagi, which are anticipated to improve by the third quarter. Despite these challenges, the unique brand positioning of Obagi and Milk in the beauty industry is acknowledged, and management remains optimistic about meeting their full-year guidance, supported by positive sell-through trends at Milk and stronger innovation expected in the latter half of the year.
Additionally, while Milk Makeup faced a decline in sales due to stockouts and weaker international performance, encouraging sell-through trends suggest potential growth acceleration starting in the second quarter. The company is also taking proactive steps to address supply chain issues and mitigate potential tariff impacts. Although there are short-term pressures, the long-term growth potential remains, leading to a cautious Hold rating until more consistent growth is observed.