Hain Celestial’s (HAIN) shareholders are feeling a bit healthier today.
AP Shares of Hain have gained today after the health-food company was upgraded by Piper Jaffray. Analyst Sean Naughton and team explain what they like about Hain:
…we believe it is a high quality play on the secular growth of healthy foods. Specifically, we are encouraged by the ability to capture growth across all channels of distribution as the consumer continues to shift their buying behaviors. Additionally, we believe HAIN’s analyst day Tuesday afternoon, Ella’s launch in Walmart and improvements in UK operations could prove to be catalysts over the next few quarters. Overall, we view HAIN as an attractive core long-term holding within our Healthy Lifestyle universe with solid organic and acquisition driven growth.
Speaking of growth, Hain’s top line is growing at a 15% clip, nearly twice the 8% average if 17 different consumer packaged goods stocks during the past 13 years, the analysts write, while margins, though much lower than competitors are getting better. As a result, Naughton upgraded shares of Hain Celestial to Overweight from Neutral and raised his price target to $94 from $80.
Shares of Hain have gained 2.2% to $79.91 today at 11:13 a.m–and trumping other health-food stocks today. Annie’s Homegrown (BNNY) has ticked up 0.4% to $49.61, Boulder Brands (BDBD) has risen 0.6% to $15.96 and Whitewave Foods (WWAV) has dropped 1.3% to $18.93.
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