In a report released today, Akshay Jagdale from Jefferies maintained a Buy rating on Hain Celestial (HAIN), with a price target of $35. The company’s shares closed yesterday at $16.15, close to its 52-week low of $14.45.
Jagdale observed:
“2Q results were disappointing & earnings reset was greater than expected. As such, the starting pt for the turnaround is lower & it will likely take longer to bridge the earnings gap relative to peers. We also understand why investors might prefer to stay on the sidelines until the new strategic plan is announced on 2/27. However, given the significant LT value unlock opportunity & our confidence in mgmt’s ability to execute, we would be buyers of the weakness. Where have we been wrong? We underestimated how much of a drag HAIN’s tail products (low velocity SKUs) continue to be on the sales growth. Also, we gave previous management benefit of the doubt in assuming that they could successfully execute on a brand segmentation/portfolio simplification strategy while improving margins.”
According to TipRanks.com, Jagdale is a 3-star analyst with an average return of 0.7% and a 48.5% success rate. Jagdale covers the Consumer Goods sector, focusing on stocks such as Lamb Weston Holdings, McCormick & Company, and Conagra Brands Inc.
Currently, the analyst consensus on Hain Celestial is a Hold with an average price target of $24.36.
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The company has a one-year high of $36.15 and a one-year low of $14.45. Currently, Hain Celestial has an average volume of 2.07M.
Based on the recent corporate insider activity of 33 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of HAIN in relation to earlier this year.
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Hain Celestial Group, Inc. engages in the production and distribution of organic and natural products. Its brands include Celestial Seasonings, Earth’s Best, Ella’s Kitchen, Terra, Garden of Eatin, Sensible Portions, and Health Valley. It operates through the following geographical segments: United States, United Kingdom, and Rest of World.
