Herbalife Given “Buy” Rating at DA Davidson (HLF)
Herbalife (NYSE:HLF)‘s stock had its “buy” rating reiterated by stock analysts at DA Davidson in a report issued on Thursday, StockRatingsNetwork reports. They currently have a $92.00 price target on the stock. DA Davidson’s price objective points to a potential upside of 25.87% from the company’s current price.
The analysts wrote, “According to the October 2, 2013 Pershing Square Investor Letter, Pershing Square has ‘in recent weeks’ covered “more than 40%” of the estimated 24.5 million share short position – about 10 million shares. Pershing Square is said to have replaced it with OTC put options that are far out of the money. It is not clear that the counterparty to this short-cover trade is not now itself short, but the very heavy volume on a strong tape (Herbalife made a new all-time high of $74.94 yesterday) would lead us to believe that a substantial amount of the 10 million share cover has occurred. As of September 13th there were still $28.6 million shares sold short. The September 30th numbers will be announced on October 9th after the market close.”
Shares of Herbalife (NYSE:HLF) traded down 6.80% during mid-day trading on Thursday, hitting $68.12. 3,409,457 shares of the company’s stock traded hands. Herbalife has a one year low of $24.24 and a one year high of $74.94. The stock has a 50-day moving average of $66.78 and a 200-day moving average of $51.55. The company has a market cap of $7.021 billion and a price-to-earnings ratio of 16.15.
Herbalife (NYSE:HLF) last issued its quarterly earnings data on Monday, July 29th. The company reported $1.41 EPS for the quarter, beating the Thomson Reuters consensus estimate of $1.18 by $0.23. The company had revenue of $1.22 billion for the quarter, compared to the consensus estimate of $1.16 billion. During the same quarter in the prior year, the company posted $1.10 earnings per share. The company’s quarterly revenue was up 18.2% on a year-over-year basis. Analysts expect that Herbalife will post $4.99 EPS for the current fiscal year.
Other equities research analysts have also recently issued reports about the stock. Analysts at Zacks upgraded shares of Herbalife (NYSE:HLF) from a “neutral” rating to an “outperform” rating in a research note to investors on Tuesday. They now have a $74.30 price target on the stock. Separately, analysts at Barclays Capital initiated coverage on shares of Herbalife (NYSE:HLF) in a research note to investors on Tuesday, September 24th. They set an “overweight” rating on the stock. Finally, analysts at Argus upgraded shares of Herbalife (NYSE:HLF) from a “hold” rating to a “buy” rating in a research note to investors on Wednesday, August 21st. They now have a $80.00 price target on the stock, up previously from $4.80. Three analysts have rated the stock with a hold rating and ten have issued a buy rating to the company. Herbalife presently has an average rating of “Buy” and a consensus price target of $72.43.
Herbalife Ltd. is a global network marketing company that sells weight management, nutritional supplements, energy, sports and fitness products and personal care products through a network of approximately 2.
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