Herbalife price target lowered to $12 from $14 at Mizuho

Mizuho analyst John Baumgartner lowered the firm’s price target on Herbalife to $12 from $14 and keeps a Neutral rating on the shares post the Q4 report. The outlook for flattish fiscal year-over-year EBITDA falls well short of consensus that was expecting 17% growth, as upside to Transformation savings only offsets capability-building investments, the analyst tells investors in a research note. The firm says that while this creates short-term pressure, it is bullish on new President Stephan Gratziani’s recovery plans. Mizuho believes Herbalife EBITDA growth is likely in fiscal 2025, but says visibility remains limited.