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Investing.com - Canaccord Genuity reduced its price target on Helen of Troy (NASDAQ:HELE) to $23.00 from $26.00 on Friday, while maintaining a Hold rating on the consumer products company. The stock, currently trading at $20.71, has declined over 71% in the past year and is trading near its 52-week low of $20.02. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment.
The price target adjustment follows Helen of Troy’s second-quarter fiscal 2026 results released Thursday, which showed some sequential improvement but continued to reflect underlying challenges. These challenges include tariff pressures, weakening consumer sentiment, increased competition, tightening retailer inventory, and uncertainty surrounding the company’s long-term strategy amid recent management changes. The company’s gross profit margin stands at 47.6%, while analysts expect an 8% revenue decline for the current fiscal year.
New CEO Scott Uzzell, who previously helped turn around the Converse brand at Nike, outlined his capital allocation priorities including reinvesting in the business, reducing debt, pursuing accretive acquisitions, and returning cash to shareholders. Uzzell also emphasized plans to implement a consumer-centric approach focused on brand-building and innovation. For deeper insights into Helen of Troy’s financial health and growth prospects, InvestingPro subscribers can access comprehensive analysis and 10 additional ProTips.
Canaccord Genuity acknowledged that Helen of Troy’s recovery will take time but expressed optimism about increased clarity under the leadership of the new brand-oriented CEO with turnaround experience. The firm specifically noted Uzzell’s strategy to empower teams to succeed in their respective marketplaces.
Despite these positive leadership developments, Canaccord maintained its Hold rating, citing ongoing macroeconomic challenges and tough competition facing Helen of Troy’s brands as reasons for remaining cautious on the stock.
In other recent news, Helen of Troy has reported its financial results for the second quarter of fiscal year 2026, showcasing an adjusted earnings per share (EPS) of $0.59, which surpassed the forecasted $0.53. The company also reported revenue of $431.8 million, exceeding the expected $416.78 million. Despite these positive earnings and revenue results, the company’s stock saw a significant decline, which may be attributed to underlying concerns not directly related to the earnings figures. UBS has responded to these developments by lowering its price target for Helen of Troy to $25 from $27, while maintaining a Neutral rating. The adjustment in the price target follows the company’s earnings report, which highlighted stronger-than-expected sales growth but weaker gross and operating profit margins. These recent developments indicate a complex financial situation for Helen of Troy, with positive revenue outcomes but challenges in profit margins.
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