87% of Herbalife (HLF) Purchasers Not Distributors; Canaccord Reiterates Buy

Canaccord Genuity today maintained a Buy rating on Herbalife (NYSE: HLF) with a price target of $63.00. Herbalife recently released data from a Nielson consumer survey in the U.S.

According to the research, 3.3% of the general population reported that they had purchased Herbalife products within the past three months, indicating that Herbalife currently has approximately 7.9 million customers when projected to the total U.S. adult population.

Commenting analyst Scott Van Winkle said, "Notably this survey asked consumers about purchases of multiple brands to hide Herbalife as the sponsor . . .The survey concluded that 87% of purchasers were not distributors, addressing the debated Vander Nat model for MLM commissions."

"The shares trade at just 8x next year's projected earnings, or a 40% discount to the direct selling peer group," added the analyst.

For an analyst ratings summary and ratings history on Herbalife (NYSE: HLF) click here. For more ratings news on Herbalife click here.

Shares of Herbalife closed at $43.38 yesterday.

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