TreeHouse Foods (THS) Stock Forecast & Price Target

TreeHouse Foods is positioned for modest growth, with FY25 sales estimated to increase by 0.5% driven by strategic focus on high-growth categories after divesting several lower-performing segments. The company's EBITDA is projected to reach $359 million, reflecting a 6% increase from previous estimates, bolstered by a 60 basis points expansion in EBITDA margin to 10.6% due to effective cost savings and slight gross margin improvements. These financial metrics indicate strong operational efficiency and a strategic alignment towards profitability, contributing to a favorable outlook for the company.

TreeHouse Foods has experienced a decline of 1.6% in private label units during the second quarter, indicating a sequential deceleration and a loss of market share to national brands. The company is projected to see less than 0.5% sales growth in the third quarter of 2025, driven by a near 7.5% decrease in volume, although offset by a 4% increase in pricing and contributions from acquisitions. The negative outlook is further compounded by issues such as a frozen griddle recall, challenges in margin management, and subdued consumer trends, resulting in an anticipated overall volume/mix decline of nearly 6.5%.