D.A. Davidson Reiterates Buy Rating, $78 PT on Herbalife Ltd. as Short-Covering Begins

In a report published Friday, D.A. Davidson analyst Timothy S. Ramey reiterated a Buy rating and $78.00 price target on

. In the report, D.A. Davidson noted, “Herbalife's short interest, which peaked at 37.2 million shares on December 31st (at a price of $32.94), fell recently to a still-huge 31 million shares on May 31st, down from 33 million shares on May 15th. The shorts have been buried in this position since the start of the year, with the stock up $12.50 plus $0.60 in dividends for a total return, year-to-date of 40%. That is before the 2.75% cost to borrow the stock. The short thesis has been thoroughly discredited and even on a day such as today, when a congresswoman asks the FTC to investigate Herbalife as a pyramid scheme, the shares are up.” Herbalife Ltd. closed on Thursday at $46.86.