Lake Street downgraded Honest Company (HNST) to Hold from Buy with a price target of $3, down from $7. The decision to exit non-strategic, lower-margin businesses under Transformation 2.0 is the right long-term move, but these actions will temporarily pressure reported results, the analyst tells investors. The firm expects the shares to remain range-bound until the company demonstrates consistent organic growth and margin improvement, the analyst added.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on HNST:
- Strategic Transformation and Growth Potential: Owen Rickert’s Buy Rating on Honest Company
- The Honest Company Reports Q3 2025 Earnings and Strategic Shift
- Honest Company reports Q3 EPS 1c, consensus 0c
- Honest Company cuts FY25 revenue view to down 3% to flat from up 4%-6%
- Honest Company Launches Strategic Transformation Initiative