Herbalife’s new distributor growth positive for third time, says DA Davidson

Herbalife (HLF) reported a sales and EBITDA beat for Q4 vs. consensus estimates, with new distributor growth positive for the third consecutive quarter, DA Davidson tells investors in a research note. The firm, which made no change to its Neutral rating and $7.50 price target slightly raised its 2025E sales estimate to +0.8% year over year from +0.7% Y/Y, but lowering its EBITDA estimate by $15M to $631M. DA Davidson added that Herbalife’s only notable tariff risk is if Mexico were to impose retaliatory tariffs on goods imported to Mexico from the U.S.