Company description hain celestial group inc based in

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COMPANY DESCRIPTION Hain Celestial Group Inc., based in Melville, New York, manufactures and markets natural and organic food and personal care products in North America and Europe. Hain’s major food brands include Celestial Seasonings, Imagine, Terra Chips, Garden of Eatin’, Health Valley, WestSoy, Earth’s Best, Arrowhead Mills, Spectrum Naturals, Rice Dream, Soy Dream, Empire Kosher and Casbah. Its personal care products are sold under the brands Jason, Live Clean, Alba Botanica, Avalon Organics, and Queen Helene. The company’s specialty products include Boston’s Better Snacks and Alba Foods. VALUATION HAIN shares trade at 24.2-times our FY18 estimate, above the peer average of 22.7 and near the mid-range of the five-year annual average range of 16.2-36.0. We believe that the premium is due to the ongoing speculation of a potential acquisition, however considering weak sales and contracting margins in the U.S., and given the ongoing SEC investigation and the possibility that Hain may face penalties, our rating remains HOLD. If the SEC finds no legal violations and the company’s strategic initiatives lead to a return to the profitability seen in previous years, we would consider returning the stock to our BUY list. On June 8 at midday, HOLD-rated HAIN traded at $27.97, up $0.31. (Deborah Ciervo, CFA, 6/8/18)
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M ARKET U PDATE - 13 - OCCIDENTAL PETROLEUM CORP. (NYSE: OXY, $84.78) ....................................... BUY OXY: Raising price target by $14 to $97 * Occidental management has historically invested within its cash flow, and has focused on achieving high returns rather than solely on growing production. The company also has an underlevered balance sheet and the highest dividend yield in the E&P group at 3.6%. * On May 8, Occidental reported an adjusted 1Q18 net profit of $708 million or $0.92 per share, up from $117 million or $0.15 per share in the prior-year quarter. EPS topped our forecast of $0.64 and the consensus estimate of $0.71. * The stronger earnings reflected higher realized prices for crude oil and natural gas liquids (NGLs) and higher total company production. Average realized prices rose 25% from the prior year for crude oil and 17% for NGLs. Realized prices for natural gas fell 23%. * We are raising our 2018 EPS estimate to $4.49 from $2.65 based on the company’s strong 1Q results and our expectations for further increases in crude oil prices. The 2018 consensus estimate is $4.45. ANALYSIS INVESTMENT THESIS We are reiterating our BUY rating on Occidental Petroleum Corp. (NYSE: OXY) and raising our price target $14 to $97. We believe that Occidental remains well positioned to weather volatile energy market conditions. The company has completed a series of asset divestitures, which have boosted cash and increased its exposure to higher- returning assets. In addition, OXY’s U.S. onshore business, Permian Resources, continues to exceed management’s expectations and should be a key growth driver over the next several years. Occidental recently acquired additional acreage and is currently the largest operator in the Permian basin.
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