Hain Celestial Group (HAIN) delivered a great report after the bell on Wednesday 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.
Disclosure: At the time of this Blog entry, his family and or clients of LakeView Asset Management, LLC were long shares of HAIN --- although positions can change at any time.
HAIN 1-yr chart: