- BofA Securities has initiated Herbalife Nutrition ( NYSE: HLF ) with an underperform rating saying that growth in emerging markets is more volatile than in mature ones, leading to lower visibility on growth in those areas.
- The firm has a $14 price target (~23% downside based on Thursday's close).
- The stock is down 12% in Friday afternoon trading.
- North America accounts for only 25% of total sales, while China represents ~11% of sales.
- Because Herbalife ( HLF ) operates as a multi-level-marketing company, visibility into sales from its members is more limited compared to retail entities, according to BofA analyst Anna Lizzul.
- Read why Seeking Alpha contributor Individual Trader considers Herbalife ( HLF ) a hold.
For further details see:
Herbalife initiated at underperform at BofA on emerging markets risk