In a report released today, Timothy Ramey from Pivotal Research maintained a Buy rating on Herbalife (HLF), with a price target of $75. The company’s shares closed yesterday at $52.90.
Ramey noted:
“We continue to argue this is a simple setup for shareholders. Herbalife has no real incentive to show great earnings, or do anything, for that matter, to positively impact the share price until after August 19 th when the converts mature. The company is better off with its share price under $54 – where it has no in-the-money liability. So of course, guidance is conservative. If you can wait 110 days, we expect another major Dutch auction – perhaps another opportunity for Icahn Enterprises to sell-down its position. We have share repurchase in our estimates in the 2H but not the 1H. And, of course, the impact on 2020 EPS estimates should be large.”
According to TipRanks.com, Ramey is a 4-star analyst with an average return of 9.5% and a 58.4% success rate. Ramey covers the Consumer Goods sector, focusing on stocks such as Constellation Brands Inc, Brown-Forman B, and Flowers Foods.
Currently, the analyst consensus on Herbalife is a Moderate Buy with an average price target of $70.
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The company has a one-year high of $61.77 and a one-year low of $48.15. Currently, Herbalife has an average volume of 1.56M.
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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.
