Pivotal Research analyst Timothy Ramey maintained a Buy rating on Herbalife (HLF) today and set a price target of $75. The company’s shares closed yesterday at $56.41.
Ramey noted:
“We thought the thesis statement may well have been Why You Should Care. Herbalife shares have drifted lower on concerns about the Chinese business. Nothing dramatic but the shares are down about 4.3% year to date. That compares to – 6.4% YTD for NUS and -19.3% for USNA. Those YTD negative returns correlate well with the three company’s percentage exposure to China (measured in sales): HLF is 20.4% China; NUS (BUY) is 31.8%; USNA (BUY) derives 56.1% of sales from Greater China. The market loves to worry about China vis-à-vis the direct-sellers. In this circumstance, it seems that one or more nutrition companies – sellers of Chinese traditional herbal medicines, made unwarranted product claims. In one circumstance the company advised consumers to stop taking anti-cancer drugs in favor of the Chinese medicine – with the predictable bad outcome.”
According to TipRanks.com, Ramey is a 4-star analyst with an average return of 9.0% and a 57.1% 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 $65.33 average price target, representing a 15.8% upside. In a report issued on February 25, Jefferies also assigned a Buy rating to the stock with a $65 price target.
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The company has a one-year high of $61.77 and a one-year low of $47.76. Currently, Herbalife has an average volume of 1.31M.
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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.
