WALD Stock Forecast & Price Target

Waldencast PLC is experiencing positive momentum, highlighted by a forecasted total revenue increase of 14.8% year-over-year to $72.7 million, surpassing the consensus estimate of $71.9 million. Additionally, both the Obagi Medical and Milk Makeup segments are expected to achieve mid-teens revenue growth for the full year, with Obagi's growth in core strategic channels accelerating to this range. Furthermore, the company is anticipated to increase its gross margin by 40 basis points to 75.4%, indicating improved profitability potential as revenue expands.

Waldencast PLC has experienced a notable decline in brand revenue for its Milk Makeup segment, with a 15.1% year-over-year decrease attributed to soft international consumption and retailer destocking efforts. The company's earnings forecast for fiscal year 2025 has been revised downwards, projecting adjusted EBITDA of $36.7 million, reflecting a reduced margin of 13.0%, highlighting the impact of a challenging retail environment and difficult product comparisons. Additionally, supply chain issues have limited revenue growth for the Obagi segment, indicating broader operational challenges that may negatively affect the company's financial performance.