Auriga Reiterates a 'Buy' on Herbalife (HLF); Shares Still Offer Material Upside

Auriga reiterates a 'Buy' on Herbalife (NYSE: HLF) price target of $68.00.

Analyst, Gary Albanese, said, "Herbalife shares rose 17% yesterday, following David Einhorn's comments at the Ira Sohn Conference. Since his questions during Herbalife's 1Q12 conference call, speculation built that he had or was about to short Herbalife's stock. However, in his presentation, he mentioned several names that he thought were overvalued but Herbalife was not among them. Although he did not talk about Herbalife during his presentation, it may not be the end of his interest in the company. Nevertheless, we believe it removes the near-term negative catalyst many investors had expected. With the diminished risk of an Einhorn short in Herbalife, investors may once again return to focusing on the company's fundamentals, which includes significant growth, material cash flow, and a sizable share repurchase strategy."

For an analyst ratings summary and ratings history on Herbalife click here. For more ratings news on Herbalife click here.

Shares of Herbalife closed at $49.51 yesterday.

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