UPDATE: BMO Capital Markets Raises PT on The Hain Celestial Group on Solid Growth Outlook

In a report published Tuesday, BMO Capital Markets analyst Amit Sharma reiterated an Outperform rating on The Hain Celestial Group HAIN, and raised the price target from $68.00 to $69.00.

In the report, BMO Capital Markets noted, “Based on our review of inter-segment sales trends, regional and household penetration as well as competitive positioning within HAIN's key categories, we gain more confidence in HAIN's ability to maintain its high-single-digits sales growth in the US. First, sales growth in premium segments (proxy for natural/organic) remain materially stronger than growth in the mainstream segments (proxy for conventional) in Hain's key categories (i.e., 23.7% vs. 1.6%), signaling that consumer preference for healthier food and beverage alternatives continues to siphon volumes away from conventional products. Second, we expect ongoing solid growth momentum to continue as natural/organics' share of total category volumes in the middle of the country remains well-below levels in Northeast and West/California (i.e., 10%-30%), signaling greater penetration and distribution opportunities. Third, HAIN is well positioned to capture strong underlying growth opportunities in its key categories by leveraging its leading brands, size/share advantage relative to its smaller peers, national distribution abilities, and existing relationship with most natural/specialty and mainstream retailers.”

The Hain Celestial Group closed on Monday at $67.33.