Pivotal Research analyst Timothy Ramey maintained a Buy rating on Herbalife (HLF) today and set a price target of $70. The company’s shares closed yesterday at $57.44.
Ramey said:
“We are boosting our 2019 estimate to $3.05 (previously $2.90) and our 2020 estimate becomes $3.55, up $0.20. Our price target goes to $70 or 20x the 2020 number. HLF remains a high-margin CPG company growing at 6%-9% organically, and likely faster than that in 2019-2020. It is accelerating sales growth which is a key goal. RISKS: Currency cuts both ways and will be a drag on FY19 results. HLF has an ongoing year-old FCPA matter with the SEC and DOJ. Yet one has to say that the risk profile of Herbalife is perhaps the lowest it has been in 10 years.”
According to TipRanks.com, Ramey is a 4-star analyst with an average return of 9.7% and a 58.5% 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 $63.67 average price target.
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Based on Herbalife’s latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $71.2 million. In comparison, last year the company had a GAAP net loss of $63.4 million.
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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.
