HAIN Stock Forecast & Price Target

Hain Celestial Group, a company specializing in health and wellness products, is forecasted to experience significant improvements in EBITDA growth and margin expansion, estimated at 13% and 170 basis points, respectively, during the second half of FY25 due to enhanced productivity and favorable comparisons. The company's strategic shift towards promoting its snacking business bolstered by regained distribution in its infant formula segment is likely to support organic sales growth and enhance visibility on productivity savings. Additionally, with 85% of Hain's portfolio positioned in growth categories and a target of achieving $60 million in free cash flow while prioritizing debt reduction, the financial outlook remains positive.

Hain Celestial Group Inc. faces a negative outlook due to a projected EBITDA of $154.5 million for FY25, which has been revised down by $7 million and remains flat compared to the prior year. The company anticipates a 6% decline in reported sales for FY25, with a significant reduction in North American organic sales growth estimates from -4.0% to -8.0% and an overall organic sales decline for the year now projected at -2.5%. Additionally, the expected free cash flow for FY25 is forecasted to drop by 28% from FY24, highlighting broader challenges within a difficult macroeconomic environment and weakening financial performance.