Honest Company downgraded to Hold from Buy at Lake Street

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.