Herbalife, founded in 1980, is one of the world’s largest multi-level marketing companies. A sales force of more than 1 million is spread across 62 countries, pushing a variety of weight management, nutritional supplements and personal-care products. Some 80% of sales come from outside the U.S. A new management team that came on board in 2003 combines strong leadership in marketing, product development, finance and management and has turned the company around, finding new areas of distribution and customers. The company will realize a huge growth opportunity if a pending license to sell in China is approved. Lasser, the Lehman analyst, sees earnings per share growing at 15% to 20% annualized over the next several years, and sees the stock trading at $45 within the next year or so. That would give the stock a price-earnings multiple of just 18, based on Lasser’s estimated ‘07 earnings of $2.45 a share.
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