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Argus Sees Long-Term Health In Herbalife Shares

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In Argus' morning summary, analyst John Staszak‏ maintained a Hold rating on Herbalife (NYSE: HLF) following the April announcement that the Department of Justice ad FBI are investigating the company.

The analyst raised estimates following first quarter results, but noted "limited near-term upside" given investigations.

Staszak wrote, “Despite HLF's recent solid results and favorable valuation metrics, we believe that the shares have limited nearterm upside due to the current investigations of the company by the FTC and the DOJ.”

Argus raised 2014 EPS estimate from $6.05 to $6.36, above the consensus estimate of $6.24. 2015 EPS estimate was also increased from $7.10 to $7.45, above the consensus of $7.20. The analyst expects revenue to increase 11 percent in 2014 to $5.3 billion, with a five-year growth rate forecast of 18 percent.

Argus reaffirmed its five-year Buy rating on the company due to Herbalife's strong balance sheet and earnings growth potential.

Shares of Herbalife closed at $64.54 on Friday. The stock is currently trading at $63.54, down 1.57 percent.

Latest Ratings for HLF

DateFirmActionFromTo
Mar 2015Canaccord GenuityMaintainsBuy
Jan 2015BarclaysMaintainsOverweight
Jan 2015Buckingham ResearchDowngradesBuyNeutral

View More Analyst Ratings for HLF
View the Latest Analyst Ratings

Posted-In: Argus John StaszakAnalyst Color News Reiteration Legal Analyst Ratings

 

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