TD Cowen analyst Robert Moskow has maintained their neutral stance on THS stock, giving a Hold rating on October 25.
Robert Moskow has given his Hold rating for TreeHouse Foods’ stock due to a combination of factors. TreeHouse Foods reported its Q3 sales results which were below expectations, and the company also lowered its guidance for FY23. The disappointing results were influenced by a product recall, supply chain disruptions, and weak consumption trends. These challenges have led to uncertainty about the company’s capacity to take advantage of the growing consumer demand for private label.
Additionally, organic sales declined with the pricing growth of 3.2% being outweighed by a volume decline of 3.8%. The company also reduced its FY23 adjusted net sales guidance. Despite these challenges, management maintained the EBITDA guidance. However, Moskow has lowered the FY23 sales estimate primarily due to the Q3 miss and the company’s Q4 guidance. For FY24, sales growth of 2.0% and EBITDA growth of 7.0% are predicted, which are below the company’s long-term growth algorithm. Therefore, due to the continued supply chain volatility and the lack of evidence that the company can capitalize on growing consumer demand, Moskow has given a Hold rating for TreeHouse Foods.
In another report released on October 25, Stifel Nicolaus also maintained a Hold rating on the stock with a $47.00 price target.
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Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of THS in relation to earlier this year.
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TreeHouse Foods (THS) Company Description:
TreeHouse Foods, Inc. is a food manufacturer servicing primarily in retail grocery and foodservice channels. Its products include non dairy powdered creamers and sweeteners; condensed, ready to serve, and powdered soups; refrigerated and shelf stable salad dressings and sauces; powdered drink mixes; single serve hot beverages; specialty teas; hot and cold cereals; macaroni and cheese, skillet dinners and other value added side dishes and salads; salsa and Mexican sauces; jams and pie fillings; pickles and related products; aseptic sauces; and liquid non dairy creamer. It operates through the following segments: Baked Goods, Beverages and Meal Solutions. The Baked Goods segment sells bars; candy; cookies; crackers; in-store bakery products; pita chips; pretzels; refrigerated dough; and retail griddle waffles, pancakes, and French toast. The Beverages segment sells broths; liquid non-dairy creamer; non-dairy powdered creamers; powdered drinks; ready-to-drink coffee; single serve hot beverages; specialty teas, and sweeteners. The Meal Solutions segment sells aseptic cheese and pudding products; baking and mix powders; hot cereals; jams, preserves, and jellies; macaroni and cheese; mayonnaise; Mexican, barbeque, and other sauces; pasta; pickles and related products; powdered soups and gravies; refrigerated and shelf stable dressings and sauces; skillet dinners; and table and flavored syrups. The company was founded on January 25, 2005 and is headquartered in Oak Brook, IL.
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