UPDATE: Canaccord Reiterates on Herbalife; FTC Investigation Not 'Major Surprise'
On Thursday, Canaccord analyst Scott Van Winkle offered his thoughts on the FTC investigation of Herbalife (NYSE: HLF), which should not be a “major surprise.”
Van Winkle believes the FTC investigation could hang over Herbalife for 9 to 10 months citing an investigation of similar charges against USANA Health Sciences in ‘07-'08 where the SEC ultimately took no action.
New member growth could also decelerate and U.S. growth trends could be compromised because of the investigation, Van Winkle said.
The investigation is not just indicting Herbalife, but also “the entire multi-level marketing industry,” said the analyst.
Shares of Herbalife are down another 4.2 percent today after falling 7.3 percent on Wednesday.
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