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Analyst Recommendations for Herbalife Stock after 4Q17


Feb. 26 2018, Updated 7:32 a.m. ET

Analysts maintain a ‘neutral’ view

Herbalife (HLF) reported better-than-expected fiscal 4Q17 results. The company’s top line returned to growth, thanks to new product launches, favorable currency rates, improved pricing, and strong performances in China and the EMEA (Europe, the Middle East, and Africa). However, near-term sales headwinds, including tough comparisons in China and North America, remain a drag. A weakness in South and Central America poses further challenges.

Herbalife’s bottom line improved due to the timing shift in expenses, favorable currency rates, and a lower adjusted effective tax rate. However, in 1Q18, the company’s bottom line is projected to fall on a YoY (year-over-year) basis.

Herbalife’s business is expected to stabilize in 2Q18, driven by a return to growth in the United States. Margin headwinds are also likely to subside, which should further support its bottom-line growth.

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Ratings and target price

Of the analysts providing recommendations on Herbalife stock, 50% have recommended a “buy” rating, and 50% have suggested a “sell.” Analysts’ price target is $89.20 per share, which reflects an upside of 7.3% to its closing price of $83.13 on February 22, 2018.

In comparison, analysts maintain a positive outlook on Nu Skin Enterprises (NUS) stock. Of the analysts covering the stock, 57% recommend a “buy,” and 43% recommend a “sell.” Most analysts have “neutral” views on Vitamin Shoppe (VSI) and Usana Health Sciences (USNA).


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