Hain Celestial price target lowered to $8 from $10 at DA Davidson

DA Davidson analyst Brian Holland lowered the firm’s price target on Hain Celestial to $8 from $10 and keeps a Neutral rating on the shares. The firm says Hain Celestial’s third quarter results disappointed relative to its model, save for operating expenses which benefited from a reduction in benefit accruals. Consistent with concerns expressed in DA Davidson’s February initiation, the pivot to top line growth is proving harder than anticipated and thus taking longer than initially communicated. The firm is encouraged by actions taken, including further SKU rationalization and streamlined operations, and valuation is at a five plus year low. However, lower revised guidance within the first year of the latest Hain Celestial turnaround iteration underscores limited visibility in the near term, it adds.