In a report released today, Akshay Jagdale from Jefferies reiterated a Buy rating on Herbalife (HLF), with a price target of $65. The company’s shares closed yesterday at $57.56, close to its 52-week high of $60.41.
Jagdale wrote:
“We recently hosted investor meetings with mgmt at our Consumer Conf. in San Fran. We came away with a greater appreciation for how HLF is able to motivate its distributor base more effectively than many of its MLM peers & we are incrementally positive about the company’s ability to sustain its recent positive momentum in sales growth. Moreover, we maintain that FY19 guidance will likely end up being conservative. We reiterate our Buy rating & $65 PT. Takeaways from recent mgmt meetings. We recently hosted investor meetings with Co-President & at our Consumer Conference in SF. We came away feeling incrementally positive about HLF’s ability to sustain its recent positive momentum in sales growth as the company’s product & technology strategies should result in much greater sales per distributor than in years past (see Charts 1-2). Product strategy represents a meaningful LT opportunity.”
According to TipRanks.com, Jagdale is a 3-star analyst with an average return of 2.1% and a 49.8% success rate. Jagdale covers the Consumer Goods sector, focusing on stocks such as Lamb Weston Holdings, McCormick & Company, and Conagra Brands Inc.
Herbalife has an analyst consensus of Strong Buy, with a price target consensus of $61.67.
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Herbalife’s market cap is currently $8.41B and has a P/E ratio of 47.37. The company has a Price to Book ratio of -11.05.
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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.
