Piper Sandler lowers Hain Celestial stock price target to $1.80

Published 03/06/2025, 14:38
Piper Sandler lowers Hain Celestial stock price target to $1.80

On Tuesday, Piper Sandler analysts reduced their price target for Hain Celestial stock to $1.80 from $2.00, maintaining a Neutral rating on the company. The stock, currently trading at $1.75, has declined about 71% year-to-date. According to InvestingPro data, the company appears undervalued based on its Fair Value analysis. The adjustment follows greater-than-anticipated pressure on the company’s top-line performance.

The analysts noted that Hain Celestial has experienced high single-digit sales declines over the past 12 weeks. This trend is expected to result in an 11-12% decline in organic revenue for the fourth quarter of fiscal year 2025, and a 7-8% decline for the full year. The calculations include personal care products, which the company has classified as "held for sale," as well as discontinued brands and SKUs. InvestingPro analysis reveals 16 additional key insights about Hain Celestial’s performance and outlook, available exclusively to subscribers.

Piper Sandler has also revised its earnings estimates for Hain Celestial. The fiscal year 2025 earnings per share (EPS) estimate has been lowered from $0.19 to $0.17, while the fiscal year 2026 EPS estimate has been reduced from $0.20 to $0.16.

The revised price target reflects approximately 10 times the estimated EPS for calendar year 2026, according to the analysts’ updated model.

In other recent news, Hain Celestial Group (NASDAQ:HAIN) reported disappointing fiscal third-quarter results, with both earnings per share (EPS) and revenue falling short of analyst expectations. The company posted an EPS of $0.07, missing the forecast of $0.1338, while revenue was reported at $390.35 million, below the anticipated $416.21 million. This performance highlights ongoing challenges in the company’s North American market, particularly within the snacks segment, which saw a notable decline. Concurrently, Hain Celestial is undergoing significant management changes, with the appointment of Allison Lewis (JO:LEWJ) as interim CEO following the departure of Wendy Davidson.

Analysts have responded to these developments with caution. Bernstein downgraded Hain Celestial’s stock from Outperform to Market Perform, slashing the price target from $8.00 to $1.50, citing concerns over CEO changes, strategic reviews, and weaker-than-expected results. Similarly, Jefferies reduced its price target to $1.99 from $4.30, maintaining a Hold rating, as they await more clarity on the company’s strategic direction. Both firms highlighted the importance of the snacks division’s performance and strategic execution for future growth.

Hain Celestial has initiated a strategic review of its portfolio, with Goldman Sachs advising on potential options to enhance shareholder value. The company aims to focus on brand innovation and cost reduction as part of its strategy to navigate current market challenges. Despite the setbacks, the leadership is committed to improving operational execution and exploring strategic alternatives to stabilize and grow the business.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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