The Ratings Game: Hain Celestial stock craters as accounting review, profit warning spook investors

Hain Celestial Group Inc. shares cratered 26% Tuesday, putting them on track for their biggest one-day percentage loss since the company went public in January 1994, after the company said it was reviewing its internal controls and accounting practices.

Hain, a healthy food company whose brands include Celestial Seasonings tea, Walnut Acres Organic, Sensible Portions and Candle Café Vegan, also issued a profit warning and said earnings would be delayed.

At least three houses downgraded the stock and slashed price targets.

“While it is typically not our preference to downgrade a stock on a day in which we anticipate it is likely to be very weak (as we expect today), in our view, there is sufficient uncertainty around any potential outcome and time frame of the review which leads us to view this as the more prudent course,” Barclays wrote in a note.

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