Herbalife plunges after BofA initiates with 'underperform'

Herbalife

03/02/2023 18:08

** Shares of nutritional food maker Herbalife Nutrition Ltd
 HLF.N  plunge ~13% to $15.99, set for biggest one-day pct fall
in almost two months
    ** BofA initiates coverage for HLF with "underperform"; sets
$14 PT
    ** PT implies a downside of ~23% to stock's last closing
price
    ** Says the largest risk to HLF is its multi-level marketer
(MLM) business model 
    ** Adds that the visibility into its sales channel of direct
sellers is more limited than for other retail players
    ** MLM is a strategy used by some direct sales firms to sell
products and services, where existing members are encouraged to
promote the offerings to other individuals and potential
recruits for the company
    ** Shares down ~8% YTD
 (Reporting by Anirban Chakroborti in Bengaluru)
 ((Anirban.Chakroborti@thomsonreuters.com;))