In a report released today, Timothy Ramey from Pivotal Research maintained a Buy rating on Herbalife (NYSE: HLF), with a price target of $62. The company’s shares closed yesterday at $54.69.
Ramey commented:
“We expected double-digit top line growth, but this was super-impressive. China rose 27%; North America rose 20.1%; South America was down 10.1% in dollars but about flat in constant currency. Total company sales in constant currency (ex. Venezuela) rose 19%. Volume points rose 15% with China up 19% and Asia-Pacific up 24,3%. All markets experienced powerful volume growth except South & Central America. Gross margin rose 230 BP on some improved pricing, and benefits from vertical manufacturing offset to a degree by F/X impacts. EBIT margin rose 320 BP aided by a cost shift out since the 3Q18 did not have convention expense that was contained in 3Q17; the convention will be next week. The tax rate was higher than expected at 32.2%. Herbalife is hosting its first March 2012.”
According to TipRanks.com, Ramey is a 5-star analyst with an average return of 10.9% and a 63.7% success rate. Ramey covers the Consumer Goods sector, focusing on stocks such as Constellation Brands Inc, Post Holdings Inc, and Brown-Forman B.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Herbalife with a $63.50 average price target.
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Herbalife’s market cap is currently $8.04B and has a P/E ratio of 51.84. The company has a Price to Book ratio of -10.32.
Based on the recent corporate insider activity of 89 insiders, corporate insider sentiment is negative on the stock.
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Herbalife Nutrition Ltd. is a holding company, which engages in the development and sale of nutrition solutions. It operates through the following segments: North America; Mexico; South and Central America; Europe, Middle East, and Africa; Asia pacific; and China.
