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On Thursday, Jefferies analyst Kaumil Gajrawala adjusted the price target for Hain Celestial (NASDAQ:HAIN), reducing it significantly to $1.99 from the previous $4.30. Despite the change in price target, the firm maintained its Hold rating on the company’s shares. The stock, currently trading at $1.57, has experienced a dramatic 80% decline over the past six months, with analyst targets ranging from $1.50 to $10.00.
Gajrawala’s adjustment follows the announcement of a strategic review and a management change at Hain Celestial. The analyst pointed out that while the company is exploring various aspects of its operations, the outcome and timing of these changes remain uncertain. He noted that pricing, execution, and growth in the snacking division are crucial for Hain Celestial’s performance. According to InvestingPro data, the company’s revenue declined by 6.7% in the last twelve months, though its current ratio of 1.9 indicates sufficient liquidity to meet short-term obligations.
The report highlighted that the company’s future direction is still unclear, with many questions yet to be answered. The analyst emphasized the need for more visibility into Hain’s plans before any potential changes to the rating could be considered. InvestingPro subscribers have access to 15+ additional investment tips and comprehensive analysis for HAIN, including detailed Fair Value estimates and financial health scores.
In the meantime, Jefferies has opted to keep a cautious stance on Hain Celestial, awaiting further details on the company’s strategy and the impact of the management shift. The new price target of $1.99 reflects the current uncertainty surrounding the company’s operational adjustments and market strategy. Trading at just 0.18 times book value, the stock shows potential value characteristics despite its recent challenges.
In other recent news, Hain Celestial Group reported disappointing fiscal third-quarter results, falling short of analyst expectations in both earnings per share (EPS) and revenue. The company posted an adjusted EPS of $0.07, significantly below the anticipated $0.1338, and reported revenue of $390.35 million, missing the forecasted $416.21 million. This marks a 5% decline in revenue year-over-year, with North American sales notably down by 10%. In response to these results and ongoing challenges, Bernstein analysts downgraded Hain Celestial’s stock from Outperform to Market Perform, slashing the price target from $8.00 to $1.50. The downgrade reflects concerns over the company’s strategic direction, management changes, and ongoing operational issues. Interim CEO Allison Lewis (JO:LEWJ) acknowledged these challenges and emphasized the need for innovation and improved commercial execution. Additionally, the company announced a leadership transition and a strategic portfolio review, with Goldman Sachs advising, to potentially enhance shareholder value.
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