Hain Celestial Continues It's Rebound

In a recent report from Jefferies, Hain Celestial HAIN continues to rebound with both margin and sales trends seeing positive momentum. Hain's ancillary business, however, remain a drag on the organization and are costing the company significantly, especially in the UK. The cost is estimated to be at least $0.20 in EPS in FY10. Hain's North American grocery, snacks and tea business looks to be on solid footing. Sales appear to have accelerated nicely in the back half of the year, while profitability also seems to be improving. The personal care business did see its revenues shrink substantially, which was down 22% in FY10. Jefferies maintains a Buy rating and raises their price target to $28 from $23. Hain closed Friday at $23.99