Nu Skin (NUS – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Chasen Bender from Citi remains neutral on the stock and has a $23.00 price target.
Chasen Bender’s Hold rating on Nu Skin’s stock is attributed to a combination of factors. Since the company’s 2Q23 results were reported, it has significantly underperformed the market, with a decline of about 28% compared to the S&P 500’s drop of around 6%. Despite the exceedance of expectations in the 2Q23 results and the indication of some improving key performance indicators, the overall outlook seemed uncertain, especially in light of the lowered 2023 guidance. Additionally, recent data suggest worsening trends and an increasingly challenging macroeconomic environment, making the forecasts for 3Q23 and 2023 appear even more difficult.
Bender also drew attention to the continued decline in global web searches for Nu Skin, as indicated by Google Trends data, which suggests a consistent downward trajectory over the last few years. This decline raises concerns about the setup for 3Q23. In response to the softening macros, the increased FX pressure from the recent strength of the USD, and the seemingly weakening trends in the business, Bender has lowered the estimates for 3Q23 and 2023. Furthermore, the target price has been adjusted down to $23, reflecting all these factors, including the expectation of greater FX headwinds.
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Based on the recent corporate insider activity of 56 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of NUS in relation to earlier this year.
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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.
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