Fannie Mae, Freddie Mac shares tumble after conservatorship comments
On Tuesday, Bernstein SocGen Group adjusted its outlook on Hain Celestial (NASDAQ:HAIN) by reducing the price target from $12.00 to $8.00, while still maintaining an Outperform rating on the company’s stock. Currently trading at $4.19, the stock has declined over 56% in the past year and shows a negative 31.87% year-to-date return, according to InvestingPro data. The adjustment follows Hain Celestial’s recent quarterly financial results, which fell short of market expectations, prompting the company to revise its full-year guidance downward.
Hain Celestial reported that it missed consensus expectations and now anticipates organic sales growth ranging between negative 2% to negative 4% for the fiscal year 2025, a change from its previous projection of flat growth or better. InvestingPro analysis indicates the company maintains a healthy current ratio of 2.01, suggesting strong short-term liquidity despite operational challenges. This revision comes after a 6% decline in organic sales growth (OSG) during the first half of the year, suggesting an improvement to between negative 2% and positive 2% in the latter half, which is still below the consensus estimate of a 3% increase.
Despite the lower performance, Hain Celestial’s management has indicated that they expect OSG to turn positive by the end of the current quarter, provided there is no further deterioration in the macroeconomic environment and the company’s adjustments in marketing and promotions for its snack products yield results. The second quarter’s disappointing performance included a 2.5% negative impact from temporary supply chain issues, primarily affecting the International business, and an additional 1% drag from actions like SKU rationalization.
Bernstein analysts have expressed continued confidence in Hain Celestial’s long-term growth potential, despite the price target reduction. Trading at a Price/Book ratio of just 0.39 and currently showing oversold conditions based on RSI, InvestingPro analysis suggests the stock may be undervalued relative to its fundamentals. They have adjusted their valuation multiple from 9.5x to 6.9x to align with the market-implied ratio while raising their 12 to 24-month EBITDA forecast from $184 million to $200 million. This increase reflects management’s assurance that they are on track to meet their long-term growth algorithm. The analysts also noted the potential for the underlying OSG of the remaining business to appear more robust if the Personal Care segment is classified as a discontinued operation in the coming quarters. For deeper insights into Hain Celestial’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Hain Celestial has been the subject of several analyst adjustments. Jefferies reduced the price target for Hain Celestial shares to $4.50, maintaining a Hold rating. This adjustment reflects caution regarding the company’s future financial performance, despite a strategic plan expected to improve margins and enhance cash flow by fiscal year 2027. In parallel, Piper Sandler also adjusted its outlook for Hain Celestial, lowering the price target to $7.00 due to ongoing retail challenges, while maintaining a Neutral stance on the company’s shares.
Hain Celestial reported disappointing Q2 results, with earnings and revenue falling short of Wall Street expectations. The company reported a Q2 EPS of $0.08, below the analyst estimate of $0.12, and revenue of $411 million, missing the consensus estimate of $432.49 million. Despite these results, the company emphasized strong operating cash flow and debt reduction.
In another development, Hain Celestial is set to open a new distribution center in Savannah, Georgia, a move expected to enhance its supply chain and customer service. This expansion is part of a strategic initiative that aims to deliver products to U.S. customers more quickly and efficiently, reducing delivery distances by about 66% annually. This change is projected to result in multimillion-dollar savings through reduced fuel and maintenance costs.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.