D.A. Davidson & Co. Maintains on Herbalife

In a report published Thursday, D.A. Davidson & Co. analyst Tim Ramey maintained a Buy rating on Herbalife HLF, keeping its $115.00 price target. “The company has had two big-four audits, both with a clean bill of health. The second, by PwC, with particular attention and inquiry paid to allegations made by a now-infamous short seller,” the report said. “Perversely, the inquisition Herbalife has endured for the past year has made the company better with a few “raising the bar” policy tweaks on product returns and “lead generation.”” The analysts believe it is the depth of both long and shorts that have clearly vindicated the HLF MLM model. According to the report, China had a breakout quarter in 3Q with sale reps up 25% and revenue up 77% on 71% volume growth. The growth of Herbalife is broad-based with many other markets growing in double digits. HLF closed Tuesday at $78.66.