Herbalife (HLF) Receives a New Rating from Jefferies

Jefferies analyst Akshay Jagdale initiated coverage with a Buy rating on Herbalife (NYSE: HLF) today and set a price target of $65. The company’s shares closed yesterday at $50.99.

Jagdale noted:

“After 5 years of muted growth owing to short attacks & ensuing regulatory changes, HLF’s sales look poised to accelerate to a more normalized range of 5-9%. We believe HLF should be able to grow at least in line with its TAM growth rate of ~6%, which combined w/ strong incremental margins & accretive FCF usage should drive significant earnings upside & support a growth company valuation. As such, we are initiating coverage with a Buy rating & $65 PT. What’s the catalyst for inflection in business momentum? Organic sales growth has inflected sharply positive from -1% in 2017 to +7.5% in 1Q18 & +28% in 2Q18.”

According to, Jagdale is a 4-star analyst with an average return of 3.4% and a 53.1% success rate. Jagdale covers the Consumer Goods sector, focusing on stocks such as Lamb Weston Holdings, McCormick & Company, and J & J Snack Foods.

Currently, the analyst consensus on Herbalife is a Moderate Buy with an average price target of $70.

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Herbalife’s market cap is currently $7.5B and has a P/E ratio of 48.33. The company has a Price to Book ratio of -9.62.

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.

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