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Analysts slice Hain Celestial price target amid delayed quarterly report

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Analysts adjusted their price targets on Hain Celestial on Tuesday after the company announced it is delaying the release of its fourth-quarter results.

Hain will evaluate revenue associated with concessions to specific distributors during the delay. The company said its board's audit committee is also conducting an independent review.

Oppenheimer's senior analyst Rupesh Parikh said Hains' weaknesses were expected.

"If you look at Hain, the stock is down significantly today. I think a lot of it is due to the run on the M&A speculations," Parikh said on "Power Lunch." "Twenty percent of the decline is related to the embedded M&A premium. The remainder is really split between a weakening fundamental outlook and the accounting issues."

Oppenheimer cut its price target on Hain to $45 from $52 a share.

Hain's stock plummeted more than 26 percent Tuesday.

Parikh noted that many grocery retailers have missed estimates and that the natural organic industry has recently become a challenge.

"If you look at the food retailer environment now, the area that the food suppliers need to do better on is on the fresh side of the business," Parikh said.

Parikh also said that Hain's new chief financial officer could have had an impact on the company's delayed report.

"When you have a new CFO or new accounting officers, those are sometimes red flags for the company, but at the same time when you have new eyes looking at the financial statements, they're bringing new ideas in terms of how to implement some of the accounting standards," Parikh said. "It could have been a new perspective that identified these errors."

-The Associated Press contributed to reporting.