Fannie Mae, Freddie Mac shares tumble after conservatorship comments
On Monday, Jefferies reiterated a Hold rating on Hain Celestial (NASDAQ:HAIN) shares while maintaining the price target at $7.55. According to InvestingPro data, the company currently trades at a notably low Price/Book multiple of 0.44, with the stock price of $3.76 hovering near its 52-week low, significantly below its peak of $10.07. The firm’s commentary highlighted that Hain Celestial’s organic sales for the second fiscal quarter decreased by 6.8%, and adjusted EBITDA fell by 20% to $38 million. These figures did not meet the expectations, which were a 3.3% decline in organic sales and $42 million in adjusted EBITDA. According to Jefferies, execution and operational issues contributed to the underperformance. Despite these challenges, InvestingPro analysis shows the company maintains a healthy current ratio of 2.01, indicating strong short-term liquidity.
Hain Celestial’s guidance for the upcoming period has been adjusted due to the softer first half of the fiscal year and the prevailing macroeconomic uncertainty. The company now anticipates organic sales to decrease between 2% and 4%, with adjusted EBITDA expected to remain flat. Jefferies pointed out that while the company is anticipated to pivot to growth in the second half of the year, the convergence between underlying improvements and reported results may present risks due to several moving parts.
The firm’s analyst stressed the gap that exists between Hain Celestial’s underlying improvements and the results that have been reported. Despite expectations for this gap to narrow as the company heads into a growth phase in the second half of the year, Jefferies remains cautious. The analyst cited the multiple factors at play that could introduce risk to the company’s performance.
Hain Celestial’s recent performance and future outlook reflect the challenges faced by the company in a complex and uncertain economic landscape. The firm’s maintenance of the Hold rating and price target at $7.55 indicates a watchful approach to the stock, awaiting clearer signs of consistent performance improvement. InvestingPro analysis suggests the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report, which provides deep-dive analysis of this and 1,400+ other US stocks.
In other recent news, The Hain Celestial Group , Inc. has announced the opening of a new distribution center in Savannah, Georgia. This development is part of the company’s strategic initiative to enhance its supply chain and customer service, and it marks the completion of a multi-year expansion project. The new center is expected to significantly reduce product delivery distances, resulting in substantial savings in fuel and maintenance costs. Hain Celestial’s Chief Supply Chain Officer, Steve Golliher, highlighted the anticipated benefits of this expansion, including faster delivery times, increased efficiencies, and continued growth and innovation within their supply chain operations.
On the other hand, Piper Sandler has adjusted its outlook for Hain Celestial, reducing the price target from $8.00 to $7.00 while maintaining a Neutral stance on the company’s shares. The decision reflects concerns over ongoing retail challenges, despite Hain Celestial’s positive development of returning its infant formula to shelves. The firm has also revised downward the estimated earnings for fiscal years 2025 and 2026, and adjusted the valuation multiple due to reduced confidence in the company’s top-line growth prospects. These are the recent developments for Hain Celestial.
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