Stock analysts downgraded The Honest Company due to price increase and concerns about potential tariffs

From Nasdaq: 2025-01-07 06:12:56

Stock analysts changing their views can impact share prices, as seen with The Honest Company’s 16% decline in December. Loop Capital analyst downgraded the stock to hold due to a significant price increase and concerns about potential tariffs from China. However, positive factors like strong sales through Amazon offer hope for future growth.

Investors are questioning if The Honest Company is overvalued despite consumer demand for cleaner products. Analysts predict revenue growth of nearly 9% for 2024, but profitability remains a concern due to past losses. While bullish on the company’s potential, seeing consistent profitability is key before investing.

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Read more at Nasdaq: Why The Honest Company’s Stock Swooned in December