Herbalife (NYSE:HLF) Stock Price Target Raised at Argus

Key Points

• Argus raised Herbalife’s price target to $20 from $15 and maintained a Buy rating, implying 28.45% upside from the stock’s current price.
• Analyst views are mixed, but the consensus rating is Moderate Buy, with an average price target of $18.50.
• Herbalife beat quarterly earnings and revenue estimates: EPS was $0.64 versus $0.62 expected, and revenue reached $1.35 billion, up 3.9% year over year. The company also authorized a $250 million share-repurchase plan.

Herbalife (NYSE:HLF - Get Free Report) had its price target lifted by Argus from $15.00 to $20.00 in a report issued on Wednesday, Benzinga reports. The firm currently has a "buy" rating on the stock. Argus's price target suggests a potential upside of 28.45% from the company's current price.

Several other brokerages have also recently issued reports on HLF. Weiss Ratings upgraded shares of Herbalife from a "hold (c)" rating to a "hold (c+)" rating in a research report on Wednesday, November 4th. Zacks Research lowered Herbalife from a "strong-buy" rating to a "hold" rating in a research report on Thursday, October 29th. UBS Group set a $21.00 price objective on Herbalife in a research note on Thursday, September 17th. Texas Capital upgraded Herbalife to a "strong-buy" rating in a research report on Thursday, September 17th. Finally, Citigroup restated a "buy" rating and set a $17.00 price objective (down from $21.00) on shares of Herbalife in a research report on Friday, August 7th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $18.50.

Herbalife Trading Down 0.1%

NYSE:HLF opened at $15.57 on Wednesday. Herbalife has a 12 month low of $8.65 and a 12 month high of $20.40. The business's 50-day moving average is $13.08 and its 200 day moving average is $13.95. The company has a market capitalization of $1.63 billion, a P/E ratio of 9.25, a P/E/G ratio of 0.49 and a beta of 0.74.

Herbalife (NYSE:HLF - Get Free Report) last posted its earnings results on Monday, November 2nd. The company reported $0.64 EPS for the quarter, beating analysts' consensus estimates of $0.62 by $0.02. Herbalife had a negative return on equity of 52.54% and a net margin of 3.41%. The firm had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.31 billion. During the same period in the prior year, the company earned $0.50 EPS. The company's quarterly revenue was up 3.9% compared to the same quarter last year. On average, research analysts forecast that Herbalife will post 2.68 earnings per share for the current year.

Herbalife announced that its Board of Directors has authorized a stock buyback plan on Tuesday, September 8th that permits the company to buy back $250 million in outstanding shares. This repurchase authorization permits the company to buy up to 19.3% of its shares through open market purchases. Share repurchase plans are often an indication that the company's board believes its shares are undervalued.

Hedge Funds Weigh In On Herbalife

Large investors have recently made changes to their positions in the company. Pacer Advisors Inc. purchased a new stake in Herbalife in the 1st quarter worth about $9,491,000. Bank of New York Mellon Corp bought a new stake in Herbalife in the second quarter worth about $5,842,000. Dimensional Fund Advisors LP boosted its position in shares of Herbalife by 29.3% during the first quarter. Dimensional Fund Advisors LP now owns 1,877,717 shares of the company's stock valued at $27,638,000 after buying an additional 425,968 shares during the period. Landscape Capital Management L.L.C. bought a new position in shares of Herbalife during the third quarter valued at approximately $3,533,000. Finally, Arrowstreet Capital Limited Partnership grew its stake in shares of Herbalife by 11.5% during the first quarter. Arrowstreet Capital Limited Partnership now owns 2,596,795 shares of the company's stock valued at $38,225,000 after buying an additional 267,539 shares during the last quarter.

About Herbalife

Herbalife Ltd. is a global nutrition company that develops and sells products focused on nutrition, weight management, fitness and personal care. Its offerings include meal-replacement shakes, protein products, dietary supplements, teas and sports-nutrition products. Founded in 1980 by Mark Hughes, Herbalife sells its products through a network of independent distributors who also provide product information and support to customers. The company serves customers in markets around the world and is headquartered in Los Angeles, California.

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