Canaccord analyst Scott Van Winkle has high hopes for Herbalife Ltd. (NYSE:HLF), reiterating a Buy recommendation on the stock, and raising the 12-month price target to $58 (from $53). The increased price target comes after the nutritional supplement company reported a solid second-quarter beat and good guidance. Herbalife posted revenue and adjusted EPS of $1.16 billion and $1.24, compared to Canaccord estimates of $1.14 billion and $1.05, respectively.

Winkle noted, “Our F2015 revenue and adj. EPS forecasts go to $4.55B/$4.63 from $4.52B/$4.40, respectively. F2016E resets to $4.73B/$5.10 from $4.81B/$4.81, reflecting 5% and 10% top- and bottom-line growth, respectively. Our $58 (from $53) price target reflects a peer group multiple of 11.5x applied to our F2016 EPS forecast.”

Bottom line: “Compensation plan changes, which are driving near-term volume declines in most markets, are largely playing out as expected. We still believe that the valuation overly discounts the business and its cash flow and maintain our BUY rating”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Scott Van Winkle has a total average return of 8.6% and a 51.6% success rate. Winkle has an 11.7% average return when recommending HLF, and is ranked #446 out of 3728 analysts.

Out of the 9 analysts polled by TipRanks, 6 rate Herbalife Ltd stock a Buy, 2 rate the stock a Hold and 1 recommends Sell. With a return potential of 17.1%, the stock’s consensus target price stands at $67.43.

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