Thursday, August 30, 2007

HAIN is Celestial

Hain Celestial (HAIN) delivered a great report after the bell last night. The company earned 30 cents versus consensus of 28 cents for 4q07. For FY07 HAIN earned $1.17. Add to that good report a boost in FY08 guidance to a range of $1.38 - $1.42 versus current consensus estimates of $1.38. At the midpoint this implies 20% YOY growth. I am willing to pay 25 times earnings for HAIN. The merger of Whole Foods (WFMI) and Wild Oats (OATS) will draw more attention to HAIN from potential suitors. I am raising my price target for HAIN to $35 - $36 based on operations. On a takeover, the stock is worth $40 or more.

At the time of this Blog entry Scott Rothbort, his family and or clients of LakeView Asset Management, LLC were long shares of HAIN --- although positions can change at any time.

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