Shares of Nu Skin Enterprises jumped 9.6% on Friday after Merrill Lynch analyst upgraded the stock to Hold from Sell and raised the price target to $58 (3.4% upside potential) from $54 on improved growth and product launches.
Merrill Lynch analyst Olivia Tong said “Nu Skin’s improved growth, which has been driven by social selling, sets the company up well ahead of innovation slated to launch in Q4. NUS has transitioned its model online better than we had anticipated but a key sticking point for us was continued declines in its leader and customer base despite the deceleration in sales declines.”
Tong noted that Nu Skin (NUS) reported on Oct. 1 that “sales leaders grew in Q3, the first time since late 2018.” Nu Skin’s CEO Ritch Wood said that the continued investment in the digitally enabled business and a robust product portfolio resulted in strong customer growth in 3Q. The company expects to report 3Q results on November 4.
The personal care and wellness products distributor said it expected 3Q revenues to be $700 million – $703 million, up from its previous guidance of $605 million – $635 million. (See NUS stock analysis on TipRanks).
Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 2 Buys and 4 Holds. The average price target of $56.33 implies that shares are fully priced at current levels. Shares have increased by about 37% year-to-date.
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