Herbalife Ltd. (NYSE:HLF) has managed to come out on top of the fight with activist investor Bill Ackman (although Ackman claims he’s still got more ammo against the company), and now one firm things it will be smooth sailing ahead. Wedbush analysts Rommel Dionisio and Kurt Frederick have raised their estimates and price target for the nutritional supplements company—in spite of a new competing line of products by another company.

herbalife

Herbalife Versus Nu Skin

Nu Skin Enterprises, Inc. (NYSE:NUS) started introducing its weight management products to its own distributors. However, the Wedbush team said Herbalife distributors so far have seen no impact from the launch of these products. The analysts report that none of the distributors they spoke with indicated there was “even a slight deceleration in their business” since the launch of the new weight management products from Nu Skin.

They said there appears to be a very high degree of loyalty among both Herbalife Ltd. (NYSE:HLF) distributors and customers. They also said the company’s Formula 1 product is more value-oriented in its price and that the distributors of Herbalife products have a “somewhat different socioeconomic profile” compared to Nu Skin distributors.

Herbalife’s 2014 estimates raised

They increased their 2014 estimates based on this encouraging feedback from Herbalife distributors and see even more potential upside if the company ends up doing a share buyback, as it has been suggested that it might. The Wedbush team raised their 2014 revenue estimate from $5.28 billion to $5.31 billion and their earnings per share estimate from $5.75 to $5.88 per share.

They believe Herbalife Ltd. (NYSE:HLF) will become more aggressive with its share buybacks now that its new auditing firm has completed the re-audit of its financial statements.

Herbalife price target raised

The analysts maintained their Outperform rating on Herbalife and increased their price target from $81 to $90 per share because of the company’s “strong core business momentum” and also their “increase comfort” in the company’s fundamentals after the completion of the re-audit.

They believe Herbalife Ltd. (NYSE:HLF) shares should trade at the average multiple for its peer group. Previously they were assigning a 5% discount.