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Analyst Recommendations for Herbalife before 4Q17

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Ratings and price target summary

Of the analysts covering Herbalife (HLF) stock, 50% of them are recommending a “buy,” and 50% are recommending a “hold.” Herbalife’s sales and profitability were subdued in the first three quarters of 2017. Its top line continued to decline as persisting challenges in North America, Mexico, and South and Central America remained a drag. Adverse currency movements affected its cost of goods sold, which in turn lowered its margins.

Herbalife’s financials are expected to remain challenged in the near term, given the weakness in its key regions. Tough YoY comparisons are also likely to hurt its 1Q18 financials.

However, Herbalife expects to return to growth in 2018 with its North America sales coming back on track in 2Q18. It also expects its margin headwinds to subside, which could boost its EPS (earnings per share) growth.

Currently, analysts have a price target of $86.80 per share for Herbalife stock, which represents an upside of 3.5% compared to its closing price of $83.88 on February 15, 2018.

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Peer comparisons

By comparison, analysts have a favorable outlook on Nu Skin Enterprises (NUS). About 57% of them are recommending a “buy” for the stock, and 43% are recommending a “sell.” Analysts covering Usana Health Sciences (USNA) and Vitamin Shoppe (VSI) are maintaining a “neutral” view of the stocks.

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