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Investing.com - Stifel maintained its Hold rating and $1.50 price target on Hain Celestial (NASDAQ:HAIN) following the company’s weaker-than-expected fourth-quarter results. The company, currently valued at $146 million, has seen its stock decline over 73% year-to-date, according to InvestingPro data.
The food company is currently conducting a strategic review while searching for a permanent CEO, according to Stifel’s research note. Hain did not provide specific guidance for fiscal year 2026 beyond expectations to be cash-flow positive. InvestingPro analysis indicates the company maintains healthy liquidity with a current ratio of 1.91, though overall financial health is rated as weak.
The company indicated that first-quarter fiscal 2026 results are expected to mirror fourth-quarter fiscal 2025 performance in terms of sales and EBITDA, suggesting a double-digit EBITDA decline to start the year. Hain’s balance sheet shows leverage at 5.7x adjusted EBITDA, which Stifel notes results in limited flexibility as the company evaluates its business.
Despite ongoing challenges, Hain has shuttered another business unit and outlined priorities including pricing actions for fiscal year 2026. Stifel views these pricing initiatives favorably as the company works to recover profitability.
The strategic review continues as Hain navigates its current financial situation, with no timeline provided for completion of the CEO search or strategic evaluation process.
In other recent news, Hain Celestial reported disappointing fourth-quarter results, with both earnings and revenue falling short of analyst expectations. The company recorded an adjusted loss per share of -$0.02, missing the analyst estimate of $0.07. Revenue was reported at $363.4 million, which was below the consensus estimate of $379 million and represented a 13% decrease compared to the same period last year. Organic net sales saw an 11% year-over-year decline, primarily driven by an 11-point drop in volume and mix.
Additionally, Mizuho lowered its price target for Hain Celestial to $1.50 from $2.50, while maintaining a Neutral rating. This decision was based on disappointing revenue and EBITDA results in the company’s fourth fiscal quarter. Mizuho pointed out fundamental pressures on Hain’s business model, which is facing challenges from both smaller natural and organic-focused category entrants and larger established brands that have enhanced their ingredients and health credentials. These developments highlight ongoing challenges for Hain Celestial as it continues its turnaround efforts.
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