Analysts, Investors React to Nielsen Data Released on Herbalife (HLF)
Herbalife (NYSE: HLF) released the results of a study late Tuesday, which revealed the penetration of the company's distributors and end users throughout the U.S. The company hired Nielsen to conduct the research.
In the report, Nielsen concluded 3.3 percent of the general population has purchased a Herbalife product within the past three months. This means Herbalife currently has about 7.9 million customers when projected to the total U.S. adult population.
While the stock was quiet in after-hours and during a portion of the pre-market session, shares moved up slightly ahead of the open and rallied to a morning high of $46.75 about an hour after the open. Herbalife shares closed up 4.4 percent to $45.27.
Analysts who cover Herbalife are pleased but not surprised to see this positive data. An analyst from Canaccord, for example, believes Herbalife's business model and deployment of daily consumption model are positive contributors to the company and will help grow the company globally.
The Canaccord analyst also noted the Nielsen study results were perfectly in line with earlier Lieberman findings which consider customer breadth.
Analysts at Suntrust Robinson Humphrey also expressed similar notions about the company. One analyst stated Herbalife is usually very successful at producing positive noise in the market. He went on to comment on Herbalife's name brand image, saying it should help to constructively grow the company for the long term.
Latest Ratings for HLF
|Mar 2014||Argus Research||Downgrades||Buy||Hold|
|Jan 2014||DA Davidson||Terminates||Buy|
|Jan 2014||S&P Capital IQ||Upgrades||Sell||Hold|
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