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Here's Why Hain Celestial Is Selling Off

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Here's Why Hain Celestial Is Selling Off
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Shares of Hain Celestial Group Inc (NASDAQ: HAIN) were trading lower by 2 percent following a notable downgrade.

In a report published Friday, Longbow Research analyst Alton Stump downgraded shares of Hain Celestial to Neutral from Buy as shares are trading near his previous price target of $66, implying shares are "fairly valued" at current levels and now is not a good entry point for investors.

"While we still lean positively on Hain Celestial's fundamentals, these are seemingly now reflected in Hain Celestial's share price," Stump wrote. "We would consider a more bullish stance if we see the shares pull back and/or Hain Celestial's top and/or bottom line growth accelerates materially."

The analyst noted that the company is in a position to at least sustain, if not accelerate, its already "impressive" high single/low double-digit organic consumption growth profile domestically. In addition, traditional grocers are expected to continue allocating greater shelf space for natural and organic foods that will broaden the company's consumer reach given its larger concentration of revenue stemming from grocers.

Stump also added that Hain Celestial will remain aggressive on the acquisition front both domestically and international, although the timing and magnitude of such events is hard to predict and accurately model in to sales forecasts.

Stump made no changes to his third quarter earnings per share estimate of $0.47 (versus consensus estimate of $0.45). The analyst also maintained a full year fiscal 2015 earnings per share estimate of $1.90 (versus consensus estimate of $1.88) and a 2016 earnings per share estimate of $2.19 (versus consensus estimate of $2.16).

Latest Ratings for HAIN

DateFirmActionFromTo
Feb 2017Argus ResearchDowngradesBuyHold
Nov 2016Bank of AmericaUpgradesUnderperformNeutral
Nov 2016Atlantic EquitiesUpgradesUnderweightNeutral

View More Analyst Ratings for HAIN
View the Latest Analyst Ratings

Posted-In: Alton Stump Grocery stores hain celestial Longbow Research Natural FoodAnalyst Color Downgrades Analyst Ratings Best of Benzinga

 

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