Piper Jaffray reiterated an Overweight rating and $56.00 price target on Hain Celestial (NASDAQ: HAIN). It's been a challenging year for Hain Celestial with the U.S. business experiencing sales declines driven by weaker grocery sales. This is consistent with store checks, which revealed a 8% decline in HAIN items at local Walmart locations since Piper Jaffray's June checks. However, the rate of decline is slowing. In addition, the company did see Costco pickup an incremental item for its Plainville Farms USDA organic oven roasted turkey.

Analyst Sean Naughton commented, "Shares of HAIN have been a disappointment in 2015 and understandably so given the organic sales slow down. But we think the current valuation on the stock is compelling as it trades at a discount to traditional consumer packaged food companies. While our store levels checks show continued item declines inside of WalMart (~10% customer), we do note the rate of decline is slowing. In addition, the company did see Costco pickup an incremental item for its Plainville Farms USDA organic oven roasted turkey, which we think is constructive. Over the next 12 months, the company needs to stabilize organic sales growth, continue to invest behind its brands, and aggressively leverage the center of the P&L. If this does occur, we believe there is material upside to shares with optionality from additional acquisitions."

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Shares of Hain Celestial closed at $39.47 yesterday.