Piper Sandler has maintained a Neutral rating and an $8.00 price target for Hain Celestial (NASDAQ: NASDAQ:HAIN), following the divestiture of its ParmCrisp business.
The firm has adjusted its financial model to account for the removal of approximately $20 million in annual revenue from its fiscal year 2025 (F25) projections due to the sale.
The updated analysis by Piper Sandler reflects expectations of a challenging first quarter in fiscal year 2025 for Hain Celestial, with anticipated declines in organic sales.
This is attributed to the company's strategic decision to shift its promotional activities to the third quarter of fiscal year 2025 (F3Q25).
In light of these developments, Piper Sandler has revised its estimates for Hain Celestial's earnings before interest, taxes, depreciation, and amortization (EBITDA) for fiscal year 2025.
The firm has decreased its EBITDA forecast from approximately $162 million to about $159 million. However, for fiscal year 2026 (F26), the EBITDA estimate has been slightly increased from approximately $164 million to $165 million.
Piper Sandler's maintained price target of $8.00 for Hain Celestial's shares reflects the firm's current assessment of the company's financial outlook and market position following the recent business divestiture and strategic realignments.
In other recent news, Hain Celestial has been the focus of several analyst adjustments following its fiscal year 2024 performance.
Piper Sandler maintained a Neutral rating with a $8.00 price target, citing challenges in the Personal Care and Baby Formula segments. The firm also adjusted its estimates for Hain Celestial's earnings before interest, taxes, depreciation, and amortization (EBITDA) for fiscal years 2025 and 2026. DA Davidson, Jefferies, and Stifel all raised their price targets for Hain Celestial, while Bernstein SocGen maintained its Outperform rating.
Hain Celestial has recently expanded its market presence, gaining distribution in approximately 13,000 additional convenience stores and around 6,600 grocery stores. The company is also expediting simplification initiatives and advancing additional restructuring actions.
Despite facing top-line challenges, Hain Celestial has confirmed its medium-term financial objectives, including a substantial gross margin increase and a 3% organic sales growth extending through fiscal year 2027.
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