Piper Jaffray Cuts Price Target on Hain Celestial (HAIN) as FY16 Gets Rough Start

Piper Jaffray maintained an Overweight rating on Hain Celestial (NASDAQ: HAIN), and cut the price target to $56.00 (from $69.00), following the company's 1Q16 earnings. FY16 has gotten off to a bumpy start with the U.S. business growth down 4.6% year-over-year. Not surprising, the natural channel experienced softness in the quarter as the company likely will work
with Whole Foods and others on pricing to pick up volume.

Analyst Sean Naughton commented, "Hain Celestial Q1 results have gotten FY16 off to a bumpy start. Topline results
disappointed with U.S. business sales down 4.6%. Unsurprisingly, the natural channel was a weak point for HAIN but it appears HAIN's grocery business is experiencing tough trends broadly as well. Hain Pure Protein has been a nice offset to center store weakness as consumers continue to prefer fresh foods. Overall, Q1 results were disappointing and softness in the natural channel and the U.S. business leads us to reduce our PT to $56 from $69 based on 23x (prev. 27x) our FY17E EPS of $2.43. We remain OW."

For an analyst ratings summary and ratings history on Hain Celestial click here. For more ratings news on Hain Celestial click here.

Shares of Hain Celestial closed at $47.91 yesterday.

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