By Dhirendra Tripathi
Investing.com – Herbalife Nutrition (NYSE:HLF) rose 1.5% in Tuesday’s trading after B. Riley analyst Jeff Van Sinderen put a buy rating on the stock.
Initiating the coverage of the maker of nutritional supplements, the analyst sees the stock at $70, an upside of approximately of 29%.
The analyst believes the company is undervalued and an under-appreciated global leader.
Herbalife is now a global leader in weight management nutritional supplements through a community-based approach and has reached consumers across income levels, according to Sinderen.
He expects Herbalife’s large legacy weight management category to continue profitable growth as high global obesity rates persist. At the same time, increasing focus on healthy lifestyles will drive newer categories, he argued in the report.
Herbalife was at the center of a long-running battle between billionaire investors Carl Icahn and Bill Ackman, who held long and short positions, respectively, for several years. With that joust behind, Sinderen believes that Herbalife holds potential for multiple expansion, steered by health and nutrition industry veteran and CEO John Agwunobi.