Auriga Reiterates a 'Hold' on Herbalife (HLF); Raising Numbers on Strong Q4
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Price: $8.23 +0.24%
Rating Summary:
8 Buy, 5 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 13 | New: 18
Rating Summary:
8 Buy, 5 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 13 | New: 18
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Auriga reiterates a 'Hold' on Herbalife (NYSE: HLF) price target raised from $56 to $66.
Auriga analyst says, "HLF reported strong 4Q and FY11 results, exceeding our expectations as well as consensus estimates. The results reflect the expansion of its daily consumption model which, according to management, accounts for 34% to 41% of distributor sales. With the results, as well as 1Q12 progress to date, management raised its guidance for 2012 and increased its dividend to an annualized $1.20 per share. Herbalife also continued to repurchase shares during the quarter and is poised for further share repurchases using its significant cash flow. With the higher guidance, we are raising our FY12 estimate to $3.61 from $3.49 and to $4.10 from $3.87 in FY13. We are also raising our price target to reflect the higher estimates to $66, which incorporates an increase in the forward multiple to 16.0x from 14.5x. Nevertheless, we maintain our recommendation as we believe shares are fairly valued following the recent rally in Herbalife's shares."
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 $66.81 yesterday.
Auriga analyst says, "HLF reported strong 4Q and FY11 results, exceeding our expectations as well as consensus estimates. The results reflect the expansion of its daily consumption model which, according to management, accounts for 34% to 41% of distributor sales. With the results, as well as 1Q12 progress to date, management raised its guidance for 2012 and increased its dividend to an annualized $1.20 per share. Herbalife also continued to repurchase shares during the quarter and is poised for further share repurchases using its significant cash flow. With the higher guidance, we are raising our FY12 estimate to $3.61 from $3.49 and to $4.10 from $3.87 in FY13. We are also raising our price target to reflect the higher estimates to $66, which incorporates an increase in the forward multiple to 16.0x from 14.5x. Nevertheless, we maintain our recommendation as we believe shares are fairly valued following the recent rally in Herbalife's shares."
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 $66.81 yesterday.
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