DA Davidson has reiterated a Neutral recommendation on Hain Celestial and kept its price target at $1.50 after the company disclosed the sale of its North American snacks unit. The shares, quoted at $1.32, remain below the analyst target. Market data show the stock trading at a Price/Book multiple of 0.25.
The research firm characterized the divestiture as "a constructive first step" that could enable Hain to reshape its portfolio or possibly position the company for a sale in whole. That view accompanies concerns about Hain’s balance sheet - total debt stood at $780 million in the most recent quarter - and the need for further strategic action.
DA Davidson noted that the snacks business had seemed valuable several years ago but that category deceleration alongside Hain’s underperformance has reduced the strategic importance of those brands. The firm said Hain still has "a lot of work to do" but that the announcement provides "optionality for HAIN to explore." The analyst group plans to revise its financial model after Hain provides more detail in its upcoming earnings disclosure next Monday.
Separately, Hain finalized a definitive agreement to sell its North American snacks business to Snackruptors Inc., described as a Canadian family-owned company, for $115 million in cash. The snacks division represented 38% of Hain’s North American sales in fiscal year 2025, despite delivering negligible EBITDA over the past year. The transaction is expected to close by February 28.
Management changes accompanied the deal. Alison E. Lewis has been named permanent President and Chief Executive Officer after serving as interim CEO since May 2025. She will also remain a member of the Board of Directors.
Other analysts have taken note of the developments. Stifel has kept a Hold rating on Hain Celestial with a price target of $1.50, reflecting a similar cautious stance in light of the divestiture and leadership changes.
Collectively, the sale and governance update mark significant moves as Hain narrows its portfolio and addresses earnings and balance-sheet challenges. DA Davidson’s posture - retaining a Neutral rating while signaling potential upside through strategic optionality - underscores that further clarity from management and updated financials will be needed before analysts alter their outlooks.
Summary
DA Davidson reaffirmed a Neutral rating and $1.50 price target on Hain Celestial after the company announced the sale of its North American snacks business for $115 million in cash. The stock trades at $1.32 and a low Price/Book multiple of 0.25. Hain carries $780 million of total debt and has appointed Alison E. Lewis as permanent CEO.