UPDATE: Herbalife (HLF) Price Target Reduced to $73 at Canaccord Genuity
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Price: $9.09 --0%
Rating Summary:
8 Buy, 5 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 9 | New: 11
Rating Summary:
8 Buy, 5 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 9 | New: 11
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(Updated - March 13, 2014 9:05 AM EDT)
Canaccord Genuity maintained a Buy rating on Herbalife (NYSE: HLF) and cut its price target to $73.00 (from $87.00).
"We believe Herbalife’s efficient business model along with deployment of its daily consumption models globally will continue to drive revenue and earnings growth. However, a formal FTC investigation will limit valuation," said analyst Scott Van Winkle.
"We suspect it could be over a year before a conclusion occurs. The SEC's 2007 investigation of USNA, which ended with no action on the same arguments, took 10 months and HLF is larger and more complicated," he added. "As we have long contended, the accusation that Herbalife is a pyramid scheme is not an accusation indicting just Herbalife, but the entire multi-level marketing industry. An FTC investigation may lead to revelations of marketing practices or distributor activity specific to Herbalife, but a business model question isn't specific to Herbalife, in our opinion."
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 $60.57 yesterday.
Canaccord Genuity maintained a Buy rating on Herbalife (NYSE: HLF) and cut its price target to $73.00 (from $87.00).
"We believe Herbalife’s efficient business model along with deployment of its daily consumption models globally will continue to drive revenue and earnings growth. However, a formal FTC investigation will limit valuation," said analyst Scott Van Winkle.
"We suspect it could be over a year before a conclusion occurs. The SEC's 2007 investigation of USNA, which ended with no action on the same arguments, took 10 months and HLF is larger and more complicated," he added. "As we have long contended, the accusation that Herbalife is a pyramid scheme is not an accusation indicting just Herbalife, but the entire multi-level marketing industry. An FTC investigation may lead to revelations of marketing practices or distributor activity specific to Herbalife, but a business model question isn't specific to Herbalife, in our opinion."
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 $60.57 yesterday.
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