Lazard Capital Sees Strength in Necessities, Value

NEW YORK—As third quarter (3Q08) reports come out, Lazard Capital Markets expects financials from the healthy lifestyle sector to be largely intact, with conservative guidance. Jacklyn Rider, Healthy Lifestyle Research Analyst, recommended investors turn to companies promoting necessities and delivering value-added options. “Our top picks are Hain Celestial and Smart Balance, as we expect that low-price-point consumables, particularly food, will outperform other consumer goods in a weak economy,” she noted.

Rider said she expects Hain, Smart Balance, Bare Escentuals, Summer Infant and Lifeway Foods to report 3Q results in line with estimates, while Hansen Natural and Jones Soda may fall short. In addition, guidance on upcoming investments will remain conservative due to consumer uncertainties; further, declining commodity prices will not yield immediate improvements in margins, but will support long-term company health.

Lazard Capital Markets LLC makes a market in BARE, HAIN, HANS, JSDA, LWAY, SMBL and SUMR securities. Price charts for these companies are available online from Lazard.