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Investing.com - Stephens downgraded Hain Celestial (NASDAQ:HAIN) from Overweight to Equal Weight and lowered its price target to $2.00 from $3.00 on Wednesday. The stock, currently trading at $1.49, has declined over 80% in the past year according to InvestingPro data.
The downgrade follows Hain Celestial’s fourth-quarter fiscal 2025 earnings release, which revealed sales below consensus expectations and negative organic trends across both North American and International segments.
The organic food company withheld its fiscal year 2026 guidance, indicating a muted first half with potential improvement in the second half as pricing actions, trade discipline, and cost savings initiatives take effect.
Stephens acknowledged that Hain’s turnaround priorities—including portfolio simplification, innovation, strategic revenue growth, productivity improvements, and digital capability enhancements—are well articulated, but cited limited visibility into sustained volume recovery.
Despite shares trading near trough levels, Stephens sees elevated execution risk and limited near-term catalysts, noting that valuation support will likely remain constrained until clearer evidence of a turnaround emerges.
In other recent news, Hain Celestial reported disappointing fourth-quarter results, with earnings and revenue falling short of analyst expectations. The company posted an adjusted loss per share of -$0.02, missing the anticipated $0.07 per share. Revenue was reported at $363.4 million, below the consensus estimate of $379 million, and marked a 13% decrease from the same period last year. Organic net sales also saw an 11% year-over-year decline, primarily due to a decrease in volume and mix. Amid these financial challenges, Mizuho lowered its price target for Hain Celestial to $1.50, citing concerns over revenue and EBITDA results. DA Davidson maintained a Neutral rating with a $2.00 price target, expressing skepticism regarding further cost-cutting potential. Meanwhile, Stifel kept its Hold rating, noting that the company is undergoing a strategic review while searching for a permanent CEO. These developments highlight ongoing struggles as Hain Celestial continues its turnaround efforts.
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