What Analysts Are Saying About Treehouse Foods Stock

Across the recent three months, 4 analysts have shared their insights on Treehouse Foods THS, expressing a variety of opinions spanning from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts have set 12-month price targets for Treehouse Foods, revealing an average target of $32.25, a high estimate of $35.00, and a low estimate of $30.00. This current average has decreased by 12.24% from the previous average price target of $36.75.

Investigating Analyst Ratings: An Elaborate Study

In examining recent analyst actions, we gain insights into how financial experts perceive Treehouse Foods. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Treehouse Foods. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Treehouse Foods compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Treehouse Foods's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Treehouse Foods's market position. Stay informed and make well-judged decisions with the assistance of 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.

Financial Milestones: Treehouse Foods's Journey

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Negative Revenue Trend: Examining Treehouse Foods's financials over 3 months reveals challenges. As of 30 September, 2024, the company experienced a decline of approximately -2.8% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Staples sector.

Net Margin: Treehouse Foods's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -0.41%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Treehouse Foods's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -0.22%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Treehouse Foods's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -0.09%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Treehouse Foods's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.99, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

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.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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