Jefferies Thinks TreeHouse Foods’ Stock is Going to Recover

By Ryan Adsit

In a report released today, Akshay Jagdale from Jefferies maintained a Buy rating on TreeHouse Foods (NYSE: THS), with a price target of $68. The company’s shares closed yesterday at $43.01, close to its 52-week low of $40.26.

According to TipRanks.com, Jagdale is a 4-star analyst with an average return of 6.8% and a 56.7% success rate. Jagdale covers the Consumer Goods sector, focusing on stocks such as Keurig Green Mountain, Lamb Weston Holdings, and McCormick & Company.

TreeHouse Foods has an analyst consensus of Hold, with a price target consensus of $49.

Based on TreeHouse Foods’ latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $1.55 billion and quarterly net profit of $28.8 million. In comparison, last year the company earned revenue of $1.78 billion and had a GAAP net loss of $282 million.

Based on the recent corporate insider activity of 32 insiders, corporate insider sentiment is negative on the stock.

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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. The company operates through three business segments: North American Retail Grocery, Food Away From Home and Industrial and Export. The North American Retail Grocery segment sells branded and private label products to customers within the United States and Canada. These products include non-dairy powdered creamers, condensed and ready to serve soups, broths and gravies, salad dressings and sauces, pickles and related products, Mexican sauces, jams and pie fillings, aseptic products, liquid non-dairy creamer, powdered drinks, hot cereals, macaroni and cheese and skillet dinners. The Food Away From Home segment sells non-dairy powdered creamers pickles and related products, Mexican sauces, refrigerated dressings, aseptic products and hot cereals to foodservice customers, including restaurant chains and food distribution companies, within the United States and Canada. The Industrial and Export segment includes co pack business and non dairy powdered creamer sales to industrial customers for use in industrial applications, including products for repackaging in portion control packages and for use as ingredients by other food manufacturers, pickles and related products, Mexican sauces, infant feeding products and refrigerated dressings. Export sales are primarily to industrial customers outside of North America. The company was founded on January 25, 2005 and is headquartered in Oak Brook, IL.