Beyond The Numbers: 4 Analysts Discuss Treehouse Foods Stock

In the last three months, 4 analysts have published ratings on Treehouse Foods THS, offering a diverse range of perspectives from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $33.5, a high estimate of $40.00, and a low estimate of $30.00. A 11.84% drop is evident in the current average compared to the previous average price target of $38.00.

Breaking Down Analyst Ratings: A Detailed Examination

The standing of Treehouse Foods among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Treehouse Foods. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Treehouse Foods compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Treehouse Foods's stock. This comparison reveals trends in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Treehouse Foods's market standing. Stay informed and make well-considered decisions with our Ratings Table.

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All You Need to Know About Treehouse Foods

TreeHouse Foods is the largest pure-play private-label manufacturer in the US. Much larger in the past following the 2016 acquisition of Ralcorp, Conagra's former private-label business, the company has since divested several businesses to focus on high-growth categories. At present, the company produces and sells snacks (crackers, pretzels, cookies, and so on), beverages and drink mixes (such as nondairy creamer, coffee, tea), and a select number of grocery products (pickles, refrigerated dough, hot cereal, cheese, and pudding). Its most important sales channel is through retail grocery stores that sell its products under their own brands, with co-manufacturing and food away from home as much smaller channels of distribution for its fare.

Treehouse Foods's Economic Impact: An Analysis

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Treehouse Foods's revenue growth over a period of 3 months has faced challenges. As of 30 June, 2024, the company experienced a revenue decline of approximately -1.87%. This indicates a decrease in the company's top-line earnings. When compared to others in the Consumer Staples sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Treehouse Foods's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -2.12%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Treehouse Foods's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -1.06%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Treehouse Foods's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -0.42%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.0.

Analyst Ratings: What Are They?

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.