Update shared on19 Aug 2025
Fair value Decreased 6.66%Analysts have lowered their price target for TreeHouse Foods to $21.31, citing ongoing weak consumption trends, sluggish organic sales growth, and pervasive sector headwinds.
Analyst Commentary
- Cautious sentiment due to weak consumption trends persisting into the second quarter.
- Expectation of slow organic sales growth, estimated at just 1% for 2025.
- Projected 15% average EPS decline among covered food and beverage peers.
- Analysts advise selectivity when investing in the food sector amid market pressures.
- Short-term headwinds and muted demand contributing to a more conservative price outlook.
What's in the News
- Stifel analyst Matthew Smith lowered the price target on TreeHouse Foods to $23 from $24, maintaining a Hold rating due to ongoing weak consumption trends in the food sector. (Periodicals)
- The firm is cautious heading into Q2 earnings season for food stocks, specifically citing continued softness in demand during the second quarter. (Periodicals)
- Stifel forecasts just 1% organic sales growth and an average 15% EPS decline across the food and beverage stocks it covers for 2025, reflecting challenging market conditions. (Periodicals)
- Investors are advised by Stifel to remain selective in their exposure to food stocks given the current industry headwinds. (Periodicals)
- There have been no recent key developments reported for TreeHouse Foods. (Key Developments)
Valuation Changes
Summary of Valuation Changes for TreeHouse Foods
- The Consensus Analyst Price Target has fallen from $22.83 to $21.31.
- The Future P/E for TreeHouse Foods has fallen slightly from 17.93x to 17.51x.
- The Discount Rate for TreeHouse Foods remained effectively unchanged, moving only marginally from 7.62% to 7.70%.
Disclaimer
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