Bernstein analyst Alexia Burland Howard downgraded the rating on Hain Celestial (HAIN – Research Report) to a Hold today, setting a price target of $1.50.
Alexia Burland Howard has given her Hold rating due to a combination of factors impacting Hain Celestial’s current and future performance. The recent abrupt change in the CEO position, coupled with a strategic review of the company’s portfolio, has created uncertainty about the company’s direction. Additionally, disappointing financial results and a revised credit agreement indicate that the company is not yet on stable ground.
Despite previous expectations of recovery through growth in organic baby formula and improvements in other product lines, the company continues to face challenges, such as declining sales in the snacks segment. The significant drop in the company’s stock price and reduced market capitalization further complicate the investment outlook. While the stock is trading at historical lows, there is no immediate catalyst to suggest a turnaround, prompting the Hold rating.
In another report released yesterday, Barclays also maintained a Hold rating on the stock with a $4.00 price target.
Based on the recent corporate insider activity of 32 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.