Ahead of the Bell: Hain given 'Buy' rating

An analyst initiating coverage of The Hain Celestial Group Inc. said Thursday that the natural and organic food producer is poised to show investors the growing strength of its core brands.

Jefferies & Co. analyst Scott Mushkin instituted a "Buy" rating and $32 price target on the Melville, N.Y., company, saying its "brand value is the ace card."

Meanwhile, Mushkin told investors in a research note that the company's personal care products are also likely to drive margins as the items account for a larger portion of sales in the coming quarters.

"We believe many of the problems that have hurt the stock are being addressed, but have masked a core franchise that is showing signs of accelerated growth, leaving investors with an opportunity to buy the stock at an attractive valuation," Mushkin wrote Thursday.

The company's brands include Celestial Seasonings drinks, Earth's Best, Arrowhead Mills and Garden of Eatin'.

Its shares were unchanged at $26.24 in premarket trading Thursday.