DA Davidson reiterates Neutral rating on Hain Celestial stock amid turnaround

Published 16/09/2025, 14:44
DA Davidson reiterates Neutral rating on Hain Celestial stock amid turnaround

Investing.com - DA Davidson has maintained its Neutral rating and $2.00 price target on Hain Celestial (NASDAQ:HAIN), currently trading at $1.55, as the organic food company embarks on another turnaround effort. According to InvestingPro data, the company operates with a significant debt burden while maintaining liquid assets that exceed short-term obligations.

The research firm noted that Hain Celestial’s results "continue to underwhelm" with the company setting course on a new turnaround iteration after previous attempts have fallen short. The company’s revenue declined by 10.17% in the last twelve months, and it remains unprofitable. DA Davidson expressed skepticism about how much more cost-cutting potential remains following the conclusion of the "Hain 2.0 playbook" that ran from 2019 to 2021.

Hain’s latest strategy focuses on aggressively streamlining its product portfolio, accelerating innovation, implementing pricing alongside revenue growth management, driving productivity, improving working capital efficiency, and enhancing digital capabilities.

DA Davidson warned investors to expect continued choppiness in performance during this transition period. The firm also noted that Hain Celestial has not provided guidance for fiscal year 2026.

The research firm’s maintained Neutral stance reflects its cautious outlook on Hain’s turnaround prospects, particularly highlighting that growth-focused approaches "haven’t worked in over a decade" for the company. Trading at 0.31 times book value, InvestingPro analysis suggests the stock may be undervalued, with 10+ additional key insights available to subscribers.

In other recent news, Hain Celestial reported disappointing fourth-quarter results, with both earnings and revenue failing to meet analyst expectations. The company posted an adjusted loss per share of $0.02, missing the projected earnings of $0.07 per share. Revenue was reported at $363.4 million, which was below the consensus estimate of $379 million and represented a 13% decline from the previous year. Organic net sales also decreased by 11% year-over-year, primarily due to an 11-point decline in volume and mix. Amid these results, Mizuho lowered its price target for Hain Celestial to $1.50 from $2.50, maintaining a Neutral rating due to concerns over revenue and EBITDA. Stifel also maintained its Hold rating and set a price target of $1.50, noting the company’s ongoing strategic review and search for a permanent CEO. Both firms highlighted the challenges Hain Celestial faces from competition in the natural and organic product sector. The company did not provide specific guidance for fiscal year 2026 but expects to achieve positive cash flow.

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