Herbalife (HLF – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Chasen Bender from Citi maintained a Buy rating on the stock and has a $13.00 price target.
Chasen Bender has given his Buy rating due to a combination of factors that suggest a positive outlook for Herbalife. The company has shown improvement in distributor trends over the past three quarters, with a notable increase in new distributor growth. This growth is expected to eventually lead to higher sales, as the reorder rates of new distributors align with historical averages, despite a slight dip in productivity.
Additionally, Herbalife’s cost-saving initiatives are projected to yield significant savings, with an estimated $30 million in reorganization savings by 2025. The company’s strategic acquisitions, including Pro2col Health, LinkBiosciences, and Pruvit Venture, are anticipated to enhance customer engagement and distributor productivity. These acquisitions, along with a targeted capital allocation strategy, contribute to the expected share price return of 61.1%, reinforcing the Buy rating.
According to TipRanks, Bender is ranked #8802 out of 9339 analysts.
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