Wedbush Downgrades Hain Celestial (HAIN) to Neutral; Takeout Speculation 'Fully Subdued', Says Analyst
- AT&T (T) Agrees to Acquire Time Warner (TWX) for More than $80 Billion - WSJ
- Top 10 News for 10/17 - 10/21: Merger Rumors Abound; CEOs Depart; Tesla Kicks Autopilot Up A Notch
- Wall Street ends little changed; Microsoft hits record
- AT&T (T) in Advanced Talks to Acquire Time Warner (TWX) - DJ
- Rockwell Automation (ROK) Said to Attract Takeover Interest from Schneider Electric - Source
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
Wedbush downgraded Hain Celestial (NASDAQ: HAIN) from Outperform to Neutral with a price target of $37.00 (from $51.00). Yesterday the company said it would delay Q4 results. It also said it does not expect to achieve its previously announced guidance for fiscal year 2016.
Analyst Phil Terpolilli commented on the news, saying, "HAIN announced yesterday internal control questions on its financial reporting and that it would miss FY16 guidance. We continue to believe HAIN has a multi-year cost savings story and distribution growth opportunities, but with its realignment of brands in its portfolio expected to take time to bear fruit, uncertainty as to the ultimate impact of accounting questions and disappointing FY16 results to expectations, we have limited conviction HAIN shares offer much near-term upside."
"With questions on accounting and delayed release, we view the likelihood of any potential CPG suitor, already somewhat challenging given HAIN’s fragmented brand base, as unlikely for now," continued the analyst.
Terpolilli added, "While the brand portfolio may not compare favorably with some peers, HAIN maintains numerous $100M+ revenue brands with exposure across multiple channels. However, with lack of takeout potential, we doubt developing brand value will help HAIN near-term."
Shares of Hain Celestial closed at $53.40 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Imperial Capital Raises Price Target on Proofpoint (PFPT) Following Strong 3Q Results
- AMD (AMD) Q3 'Solid' - Jefferies
- Philip Morris Intl (PM) PT Raised to $101 at Jefferies
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Downgrades, Hot Comments
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!