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What Analysts Think of Herbalife Stock

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Ratings summary

Five Wall Street analysts cover Herbalife (HLF) stock. These analysts rated Herbalife stock as 2.4 on a scale of 1.0 (strong buy) to 5.0 (strong sell). About 40% of the analysts recommended a “buy” for the stock, and ~60% recommended a “hold.”

On April 27, 2017, Herbalife was trading at $62.94, reflecting a 7.8% upside to analysts’ 12-month price target of $68.25 per share.

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Peer comparisons

Of the seven analysts rating Nu Skin Enterprises (NUS), 43% recommended a “buy” for the stock, 28% recommended a “hold,” and 29% recommended a “sell.”

Of the analysts covering The Vitamin Shoppe (VSI), 20% rated the stock a “buy,” 50% rated it a “hold,” and 30% rated it a “sell.”

As for GNC Holdings (GNC), 20% recommended a “buy” for the stock, 50% recommended a “hold,” and 30% recommended a “sell.”

Valuation summary

On April 27, 2017, Herbalife was trading at a 12-month forward PE (price-to-earnings) ratio of 15.4x. Currently, the company is trading at a lower valuation multiple than the S&P 500 Index’s (SPX) forward PE ratio of 18.7x.

In comparison, Herbalife’s rival Nu Skin Enterprises and Usana Health Sciences are currently trading at forward PE ratios of 17.5x and 13.8x, respectively.

Growth expectations

Despite the challenges, Herbalife expects its net sales to rise in 2017, reflecting volume growth. The company’s management expects its 2017 sales to increase in the range of 0.30%–3.3%, driven by 2.0%–5.0% volume growth.

Analysts project a 1.1% rise in Herbalife’s 2017 sales. The company expects its adjusted EPS (earnings per share) to be $3.65–$4.05 in 2017, compared to analysts’ expectations of $3.96.

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