Jefferies updated its view on Hain Celestial Group Inc (NASDAQ:HAIN), increasing the price target to $9.35 from the previous target of $9.00. The investment firm maintained its Hold rating on the stock. The decision came after recognizing Hain Celestial's solid performance at the end of its restructuring year and noting the company's ongoing progress.
The company's portfolio improvements and expanding margins were highlighted as key factors in its development. Additionally, the reduction in balance sheet risk, with leverage now at 3.7 times, was acknowledged as a significant step for Hain Celestial, particularly during its turnaround phase.
The analyst's comments reflected optimism about the company's future, stating that Hain Celestial is well-positioned to shift towards organic growth in the upcoming year. However, they also noted that there is still considerable work to be done and that execution will be critical for the company's success.
The report emphasized that Hain Celestial is in the early stages of its turnaround process. The maintained Hold rating suggests a cautious approach, acknowledging improvements while also considering the challenges that lie ahead for the company in solidifying its growth trajectory.
In other recent news, Hain Celestial Group Inc. exceeded fiscal fourth-quarter 2024 expectations with a 3% increase in organic net sales and robust profit performance.
Despite a slight dip in organic sales growth, the company confirmed its medium-term financial objectives, including a substantial gross margin increase and a 3% organic sales growth extending through fiscal year 2027. Financial services firm Stifel has adjusted its outlook on Hain Celestial, increasing the price target and maintaining its Hold rating.
Research firm Bernstein also maintained its Outperform rating on Hain Celestial, noting the company's continued sales challenges. Bernstein expects sales impacts to persist into fiscal year 2025 due to SKU rationalizations and a generally weak U.S. Food backdrop.
However, Bernstein anticipates a recovery in the latter half of FY25, particularly in the Baby & Kids segment.
These are recent developments, and Hain Celestial has provided initial guidance for fiscal year 2025, forecasting at least stable organic sales growth and a mid-single digit uptick in EBITDA.
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