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UPDATE: Canaccord Reiterates on Herbalife; FTC Investigation Not 'Major Surprise'

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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.

Latest Ratings for HLF

DateFirmActionFromTo
Nov 2014BarclaysMaintainsOverweight
Nov 2014BTIG ResearchInitiates Coverage onBuy
Nov 2014SunTrust Robinson HumphreyDowngradesBuyNeutral

View More Analyst Ratings for HLF
View the Latest Analyst Ratings

Posted-In: Canaccord Scott Van WinkleAnalyst Color News Analyst Ratings

 

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