PBH: Buybacks And Cash Flow Will Drive Future M&A Upside

Analysts have modestly raised their price target on Prestige Consumer Healthcare to 78 dollars from 78 dollars, reflecting largely unchanged views on fair value as stable discount rates, revenue growth expectations, profit margins, and future earnings multiples remain intact.

What's in the News

• Completed a share repurchase program totaling 2,298,247 shares (4.65% of outstanding shares) for approximately 161.18 million dollars under the buyback announced on May 14, 2024 (Key Developments)
• Repurchased 1,150,129 shares (2.34% of outstanding shares) for 75 million dollars between July 1, 2025 and September 30, 2025 as part of the same buyback authorization (Key Developments)
• Reaffirmed Fiscal 2026 revenue guidance of 1.1 billion to 1.115 billion dollars, with an expected organic revenue decline of approximately 1.5% to 3.0% (Key Developments)
• Signaled active interest in mergers and acquisitions, citing historically low leverage and more than 1 billion dollars of expected cash flow over the next four years to deploy into disciplined, value accretive deals (Key Developments)

Valuation Changes

• Fair Value Estimate remains unchanged at 78 dollars per share, indicating no material reassessment of intrinsic value.
• The Discount Rate is effectively flat at approximately 6.96 percent, reflecting stable perceived risk and cost of capital assumptions.
• Revenue Growth is adjusted fractionally higher to about 1.47 percent, a change too small to alter the overall growth outlook.
• The Net Profit Margin is nudged slightly upward to roughly 20.57 percent, reinforcing expectations of steady profitability.
• The Future P/E is essentially unchanged at about 17.19 times, suggesting no notable shift in assumed market valuation multiples.