Herbalife (HLF) PT Cut to $85 by Pivotal Research's Ramey; 2016 Estimates Cut

Pivotal Research analyst Tim Ramey cut his price target on Herbalife (NYSE: HLF) to $85.00 (from $100.00) following results after the close but maintained a Buy rating.

Ramey commented, "HLF reported 3Q Adjusted EPS of $1.28 vs. $1.45, well ahead of our Street-high estimate of $1.15 and the $1.05 consensus. F/X was a $0.42 negative to 3Q15. Even GAAP EPS was impressive at $1.09 versus $0.13. The sales picture was mixed. Volume fell 3% (guidance -1% to -4%); Sales fell 12.2% (guidance was -7% to - 10%); however, currency-adjusted sales grew 5% (guidance was (1% - 4%). It’s daunting to see that F/X subtracted 17% from sales. Average active sales leaders rose 4%. The company raised 2015 guidance to $4.65-$4.75 (previously $4.50-$4.70). However it issued initial guidance of $4.35-$4.75 for 2016 noting that currency is modeled as a $0.50 EPS headwind. Street consensus for 2016 was at $5.18; our prior estimate was for $5.60. The 4Q15 has an incremental $0.11 of F/X since last guidance."

FY 2016 EPS goes from $5.60 to $4.75. FY 2016 sales goes from $4.87B to $4.656B.

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 $57.85 yesterday.

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