Analyst Chasen Bender of Citi reiterated a Hold rating on Nu Skin (NUS – Research Report), with a price target of $14.00.
Chasen Bender has given his Hold rating due to a combination of factors impacting Nu Skin Enterprises Inc. In his analysis, Bender acknowledges that the company’s first-quarter earnings per share outperformed expectations, yet the overall sales met projected figures. Despite the company’s reaffirmation of its 2024 guidance and upward adjustment in constant currency sales projections, there remains a cautious stance regarding the second half of the year’s revenue trajectory. Nu Skin’s confidence seems to stem from strategic initiatives such as revamped incentive structures and product launches, which are expected to drive growth in the latter half of the year. However, given the current macroeconomic challenges and diminishing key performance indicators, Bender advises prudence.
Furthermore, Bender recognizes the company’s efforts in improving cost efficiency, as reflected in the gross margin enhancement, and anticipates potential benefits from SKU rationalization. Nonetheless, he predicts that the prevailing narrative will likely focus on the company’s revenue growth rather than margin improvements. The maintenance of a Neutral position and a $14 target price reflects this cautious optimism, tempered by the reality of a challenging near-term outlook and the lack of clear visibility on revenue stabilization. Consequently, Bender’s valuation stands below Nu Skin’s last five-year average price-to-earnings multiple, acknowledging the inherent uncertainties while also recognizing the potential for operational progress.
Based on the recent corporate insider activity of 45 insiders, corporate insider sentiment is neutral on the stock.
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Nu Skin (NUS) Company Description:
Nu Skin Enterprises, Inc. develops and distributes personal care products and nutritional supplements. The firm engages in the provision of beauty and wellness products and solutions. Its brands include Nu Skin and Pharmanex. The company was founded by Blake M. Roney, Sandra N. Tillotson, and Steven J. Lund in 1984 and is headquartered in Provo, UT.
