Hain Celestial with Upside

The Hain Celestial Group, Inc. (HAIN - Analyst Report) ranks itself as the leader in 13 out of 15 natural food categories, despite stiff and growing competition. Roughly 65% of the company's products is outsourced, while the remaining 35% is manufactured at its own facilities.

Internal sales growth, driven by consumer demand for natural food products, and management's focus on profit margins bode well for Hain Celestial Group's long-term outlook. In addition, management's acquisition strategy adds incremental growth to the company's organic sales growth.

Also, the company has been successful implementing price increases with the most recent having been realized in January. However, inventory reductions by retailers and distributors, along with higher input costs, are negatively impacting the sales growth rate and profitability short-term.

The Buy rating is being maintained due to valuation.

Read the full analyst report on HAIN.