Herbalife’s Traffic Troubles Despite Citi’s Buy Rating

Despite a robust history and presence in the health and wellness sector, Herbalife Ltd. (NYSE: HLF) is experiencing concerning trends in web and app traffic. The Herbalife stock price has moved negative on the day, down 0.83% having opened higher, with Citi analyst Chasen Bender's recent remarks on the weak traffic trends observed for the company's online platforms potentially weighing on sentiment. It is worth noting that despite the comment, Bender maintains a Buy rating on the shares with a price target of $13.

In the U.S., a sharp reversal in traffic was noted compared to the double-digit growth experienced in mid to late 2024. Now, both average unique visitors and total web visits are on a downturn. In regions such as Mexico and India, the Herbalife Shop app's user activity has softened or remained stagnant, respectively, painting a subdued picture of engagement.

Herbalife Ltd., listed on the NYSE under the ticker HLF, is a globally recognized company providing health and wellness products. The company, headquartered in Los Angeles, California, operates across multiple continents, offering dietary and nutritional supplements, weight management products, sports and fitness lines, and personal care items through a network of sales representatives and retail outlets.

The company currently holds a market cap of $843million and a 52-week trading range between $5.04 and $12.79. Herbalife's trailing P/E ratio stands at 3.41, with a forward P/E ratio of 4.28, indicating potential for earnings growth as reflected in market estimates.

Even with Citi's optimistic Buy rating, the company faces challenges in digital user engagement, which could pose risks to its growth trajectory and investor sentiment in the near term.