Auriga Maintains 'Buy' on Herbalife (HLF); Takeaways From Analyst Meeting

May 9, 2012 10:49 AM EDT
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Price: $53.01 -0.24%

Rating Summary:
    6 Buy, 5 Hold, 1 Sell

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    Up: 30 | Down: 30 | New: 23
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Auriga maintains a 'Buy' on Herbalife (NYSE: HLF) price target of $68.00.

Analyst, Gary Albanese, said, "Herbalife management, including Pres. Des Walsh, CFO John DeSimone and IR Director Amy Greene, met this morning with its sell-side equity coverage in New York to provide an update since the end of the quarter. Michael Johnson, Herbalife Chairman and CEO, was unavailable to make the trip due to a recent sports-related injury but remains in contact with other management members. The update revolved around the involvement of hedge fund manager David Einhorn, who asked a question on the recent conference call and whose contribution likely led to the 24% decline in the share price since the earnings release. Background with Einhorn. Aside from the questions that Mr. Einhorn asked on the conference call, his interest in Herbalife has been building. One of his associates participated in the company's analyst day, but the questions were thought to non-confrontational, regulatory type questions. In addition, there is another person, likely working as a consultant, which has been contacting ex-customers and ex-distributors to get their thoughts on the company. Aside from that contact, including the conference call questions, there has not been any further contact with David Einhorn or Greenlight Capital."

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 $45.55 yesterday.

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