DA Davidson Raises Price Target on Herbalife (HLF) to $75 as Sales Rose 28% and EPS Rose 35%

DA Davidson is reiterating its Buy rating on shares of Herbalife (NYSE: HLF) following its Q2 results, along with raising its price target from $68 to $75.

The company released its Q2 results with $879.7 million in sales and earnings of $0.88 per shares, which were up 27.7 percent and 35 percent year-over-year. Global volumes increased 17.1 percent year-over-year.

Emerging market lead the growth with with volumes in Asia-Pacific up 27.2 percent; up 26.3 percent in Mexico; and 34.2 percent in South & Central America. Volumes in China fell 8.7 percent while Active Sales Leaders grew 25.4 percent. Volumes in established markets grew by 12.2 percent as Active Sales Leaders in established markets increased by 16.3 percent.

Herbalife raised its 2011 EPS guidance from $2.77-$2.89 to $2.97-$3.07. It also released its Q3 guidance with an EPS range of $0.71-$0.76. To go inline with managements performance and the new guidance, DA Davidson is increasing its 2011 and 2012 EPS estimates from $2.90 and $3.35 to $3.10 and $3.55.

For more ratings news on Herbalife click here and for the rating history of Herbalife click here.

Shares of Herbalife closed at $55.54 yesterday.

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