In a research report published today, March 9th, BTIG analyst April Scee reiterated a Buy rating on Herbalife Ltd. (NYSE:HLF) with a price target of $55.00 following the company’s 35th anniversary event. The event used Herbalife’s headquarters in Los Angeles, but took place worldwide to break the world record of most participants doing a High Intensity Interval Training (HIIT) workout in 24 hours.
Scee noted three reasons to be optimistic about Herbalife. First, Scee notes that “obesity is a big problem & HLF is addressing it… [The Milken Institute] suggested that 50% of all economic growth can be traced to advances in health. Although we have yet to see Milken on the share register, he expressed great admiration both for Herbalife’s business & mission, and reminded us that HLF has only reached 1/20 of 1% of the global population, suggesting significant opportunity ahead.”
Furthermore, Scee notes that “Herbalife works through science plus community.” She continues, “The community fostered by Herbalife augments the science” that community support aids weight loss, “as regular meetings provide peer reinforcement & support, increasing chances of successful weight loss.”
Lastly, Scee addressed “Newly announced relationships reinforc[ing] HLF’s mission,” as Herbalife announced a domestic partnership with The American Red Cross and a global partnership with The Special Olympics. HLF will provide healthy snacks for both organizations.
Scee concluded, “We continue to recommend Herbalife. HLF doesn’t trade on fundamentals, which remain strong despite near-term disruption… We believe when Herbalife regains control of the narrative, it will be clear how trend-right the product is, how powerful the route to market is, and how well HLF can innovate its way into the future marketplace. A bumpy ride still lies ahead, but we believe the gain will be worth the pain for those who stick around.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst April Scee has a total average return of 2.1% and a 81.0% success rate. Scee has a 4.5% average return when recommending HLF, and is ranked #1860 out of 3508 analysts.