In a research report issued today, Canaccord Genuity analyst Scott Van Winkle maintained a Buy rating on Herbalife (NYSE:HLF), but reduced his price target to $50 (from $60), which represents a potential upside of 60% from where the stock is currently trading.

Van Winkle explained, “Herbalife’s business model is now generating low-single-digit growth (ex. currency) and the valuation has compressed further as currency headwinds compound lingering uncertainty from an ongoing FTC investigation. The valuation overly discounts the business and its cash flow, in our opinion.”

The analyst added, “We continue to believe that the shares are significantly undervalued assuming any reasonable resolution to regulatory scrutiny. Our BUY rating is based on the expectation of a resolution removing uncertainty without a debilitating impact on the business model that leads to a meaningful revaluation.”

Herbalife Ltd., a nutrition company, sells weight management, healthy meals and snacks, sports and fitness, energy and targeted nutritional products, and personal care products worldwide.