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On Monday, DA Davidson maintained a positive stance on Prestige Brands (NYSE:PBH) as analyst Linda Bolton Weiser increased the price target on the company’s stock to $104 from $95, while reiterating a Buy rating. The adjustment follows Prestige Brands’ announcement of sales and earnings per share (EPS) that exceeded expectations for the third fiscal quarter of 2025. Additionally, the company has updated its full-year 2025 EPS guidance, now forecasting approximately $4.50, up from the previous range of $4.40 to $4.46. According to InvestingPro data, four analysts have recently revised their earnings estimates upward for the upcoming period, reflecting growing confidence in the company’s outlook.
After the release of the favorable financial results, Prestige Brands’ stock experienced a significant jump, closing the day with a 15% gain. Contributing to the company’s strong performance were increased year-over-year sales of Summer’s Eve products and a sequential rise in Clear Eyes shipments. Looking ahead, Weiser noted that Prestige Brands plans to expand its supplier base for Clear Eyes in the second half of fiscal year 2026. The company, currently valued at $4.3 billion, has demonstrated strong financial health with a current ratio of 3.68, indicating robust liquidity. InvestingPro analysis suggests the stock is trading above its Fair Value, with the stock price near its 52-week high of $88.36.
For the fourth fiscal quarter of 2025, DA Davidson anticipates a 5% year-over-year increase in sales for Prestige Brands, citing an easy comparison to the previous year when Clear Eyes supply faced disruptions. The analyst has updated the Discounted Cash Flow (DCF) valuation model for the company, opting to raise the free cash flow growth rate to 3% from 1% for fiscal years 2028 to 2031. The risk-free rate used in the model has also been increased to 4.5% from 4.1%.
The new DCF valuation led to a recalculated intrinsic value for Prestige Brands, which supported the revised price target of $104. This new target reflects DA Davidson’s confidence in the company’s continued financial progress and growth potential.
In other recent news, Prestige Brands has been the subject of multiple analyst adjustments and has released its second-quarter earnings. DA Davidson has increased its price target for Prestige Brands to $104 from the previous $95, maintaining a Buy rating. This adjustment was made following Prestige Brands’ announcement of third-quarter earnings per share (EPS) and sales that surpassed expectations, leading the company to raise its full-year 2025 EPS guidance to approximately $4.50.
Canaccord Genuity has reiterated its Buy rating on Prestige Brands, retaining a price target of $93.00. The firm highlighted Prestige Brands’ capital allocation strategy, which includes business reinvestment, strategic share repurchases, further debt reduction, and potential mergers and acquisitions.
On the earnings front, Prestige Brands reported a slight decline in sales to $284 million for the second quarter of 2025. However, the company saw an increase in EPS to $1.09 and generated $68 million in free cash flow. Despite supply chain challenges with the Clear Eyes brand, international growth, particularly with the Hydralyte brand and Canadian portfolio, helped mitigate the decline.
These recent developments underline Prestige Brands’ ongoing business strategy and market momentum. The company is expected to continue its growth trajectory, backed by positive analyst outlooks and robust financial performance.
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