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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: 2MAR$ who wrote (18689)	1/17/2013 12:52:35 PM
From: 2MAR$	Respond to of 18998

DA Davidson Boosts Target on Herbalife (HLF) to $78; Could Be Worth $180 Long Term streetinsider.com Today's Overall Ratings: Up: 18 \| Down: 35 \| New: 26 DA Davidson analyst Tim Ramey raised its price target on Herbalife ( NYSE: HLF) from $72 to $78 following today's Q4 pre-announcement. The company earlier said it sees Q4 EPS of $1.02-$1.05, which compares to prior guidance of $0.97-$1.01 and better than the Street expectation of $1.01. Ramey had expected $1.02. Sales are expected to rise 19.9%, better than their estimate of 18.0%. The analyst highlights that while there was no change in 2013 guidance for volume but higher expenses "associated with recent events" were noted. The firm is increasing 2012 estimate to $4.05, versus $4.03 and 2013 estimate goes to $4.85, versus $4.55. The company noted that it expects to begin repurchasing shares and it will be able to do so on Tuesday January 22nd giving effect for the two trading day blackout period after this announcement. Ramey's $78 price target is based on 16x their $4.85 EPS estimate for 2013. However, he said EPS growth of 20% could easily support a valuation of 25x EPS once the current valuation cloud is lifted and the market's questions have been "asked and answered.". He expects this to happen in 2013. Once this happens, share could trade to $120 just based on current numbers. Longer term Ramey sees even greater upside and raised his five-year target to $180, up from $120. For an analyst ratings summary and ratings history on Herbalife click here. For more ratings news on Herbalife click here. Shares of Herbalife closed at $45.06 yesterday, with a 52 week range of $24.24-$73.00.