Hain Stock Downgraded

We’ve frequently written that we don’t understand Wall Street’s love affair with Hain-Celestial and while we’d be the first to admit we understand Wall Street as much as we know how to drive the Apollo Spaceship Lunar Module we felt somewhat gratified that Wall Street decided that the price for Hain’s love might be a bit to passionate for the object of its affection, at least according to one JPMorgan’s analyst.

Analyst Pablo Zuanic noted that the company’s tea sales are a continuing disappointment and that any efforts to reduce prices in a time of rising commodity costs will further impact margins.

The company, which is noted for its aggresive acquisition strategy, recently acquired the British Daily Bread, LTD, which according to Hain, strengthens the company’s European operations, which it established in 2005.

One area not mentioned in the JPMorgan report was the relatively strong performance of Hain’s personal care brands, notably Avalon Organic.

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