Analyst Anna Lizzul of Bank of America Securities reiterated a Sell rating on Herbalife (HLF – Research Report), with a price target of $7.00.
Anna Lizzul has given her Sell rating due to a combination of factors affecting Herbalife’s financial outlook. The company’s guidance for 2025 has been negatively impacted by foreign exchange rates, leading to tempered expectations for net sales and adjusted EBITDA. Despite a better-than-expected performance in the fourth quarter of 2024, with EPS and margins exceeding consensus estimates, the overall visibility into sustainable sales growth and margin expansion remains low.
Moreover, the price objective for Herbalife is set at $7, which is below the current trading price of $8.70, indicating limited upside potential. The valuation is based on a multiple of the company’s projected adjusted EBITDA for 2026, reflecting the inherent risks in the business. These factors contribute to the decision to maintain an Underperform rating, suggesting that investors may face challenges in achieving significant returns from this stock.