D.A. Davidson Names Herbalife a 'Best Idea' for 2013

Shares of Herbalife HLF are now trading well into negative territory heading into the last hour of Wednesday's trading session. After opening at $33.84 earlier (up 2.7 percent from Monday's close), Herbalife shares are now down nearly 3 percent to around $32. Traders in the stock are responding to an earlier research note from D.A. Davidson's Timothy Ramey. The analyst called Herbalife a best idea for 2013, citing a possible bid for the company or a potential deal for Herbalife to buy a peer. Ramey believes Herbalife's growth could accelerate this year compared to 2012 given forex which should be less of a drag in 2013. Ramey said he expects sales out of China to become a "more important" part of Herbalife's revenue model. D.A. Davidson maintains a Buy rating and $72 price target on shares of Herbalife. The firm's long-term price target remains at $120.