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On Wednesday, Evercore ISI adjusted its outlook on Hain Celestial Group Inc. (NASDAQ:HAIN), reducing the price target from the previous $9.00 to $6.00, while maintaining an "In Line" stock rating. The adjustment follows the company’s fiscal second-quarter earnings report and subsequent discussions with Hain Celestial’s management.
Analysts at Evercore ISI have revised their forecasts for Hain Celestial’s fiscal year 2025 EBITDA, bringing it down from $161 million to $154 million. This new estimate remains flat year-over-year and falls in line with the consensus of $161 million. The revision comes after a period of continued challenges for the company, including an average 7% decline in organic sales in North America over the last eight quarters. InvestingPro analysis shows the company’s current EBITDA at $127.39 million, with a strong free cash flow yield indicating potential value despite operational headwinds.
The company has been actively working on streamlining its product portfolio through SKU rationalization and divestitures, as well as aiming for distribution gains and resolving supply chain issues, such as those related to formula production. Despite these efforts, Hain Celestial experienced a 9% drop in organic sales in North America during the fiscal second quarter.
Evercore ISI suggests there may be potential for improved trends in the second half of the fiscal year, which the firm will continue to monitor closely. The new price target of $6 is based on approximately 8.5 times the estimated fiscal year 2026 EBITDA. The "In Line" rating indicates that the firm believes Hain Celestial’s stock performance will be in step with the average returns of the stocks the analysts cover. InvestingPro subscribers can access detailed analysis including 10 key tips about HAIN’s financial health, comprehensive valuation metrics, and the company’s complete Pro Research Report, which provides deep insights into what really matters for informed investment decisions.
In other recent news, Hain Celestial has been the subject of several analyst adjustments following its weaker-than-expected Q2 performance. Stifel analysts reduced their price target for Hain Celestial from $7.00 to $6.00, maintaining a Hold rating on the stock. The company’s total organic sales fell by 7% in Q2, and its EBITDA dropped 20% compared to the previous year, causing a revision of the full-year 2025 revenue and EBITDA outlook.
Simultaneously, Bernstein SocGen Group adjusted its outlook on Hain Celestial by reducing the price target from $12.00 to $8.00, while still maintaining an Outperform rating. This adjustment comes in light of Hain Celestial’s revised full-year guidance following a 6% decline in organic sales growth during the first half of the year.
In another development, Jefferies analyst Kaumil Gajrawala adjusted the price target for Hain Celestial shares to $4.50 from the previous $7.55, maintaining a Hold rating on the stock. This cautious stance reflects the company’s strategic goals expected to yield over 3% organic growth and improve margins significantly by fiscal year 2027. These recent developments provide investors with a clearer understanding of Hain Celestial’s financial health and future expectations.
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