DA Davidson lifts Nature’s Sunshine stock target to $23.50

On Thursday, DA Davidson analyst Linda Bolton Weiser increased the price target for Nature’s Sunshine Products (NASDAQ:NATR) to $23.50, up from the previous $23.00, while reiterating a Buy rating on the stock. According to InvestingPro analysis, the stock appears undervalued at its current price of $13.47, with additional insights available in the comprehensive Pro Research Report covering this company. The revision follows Nature’s Sunshine’s fourth-quarter results, which showcased a sales increase of 10% excluding foreign exchange impacts, propelled by significant growth in the Asian and European markets. The company’s performance in Korea was particularly notable, marking a year-over-year increase of 21%, the second consecutive quarter of growth since the second quarter of 2021.

Nature’s Sunshine reported EBITDA (earnings before interest, taxes, depreciation, and amortization) growth of 6% to $10.3 million, aligning closely with the market’s expectation of $10.9 million. The company’s impressive gross profit margin of 71.46% underscores its operational efficiency. The company also provided guidance for 2025, projecting sales to range between $445 million and $470 million, which envelopes the consensus despite an anticipated foreign exchange impact of negative 1%.

Weiser’s decision to adjust the annual sales estimates while maintaining the annual EBITDA forecast stems from the company’s robust financial position, characterized by zero debt and cash reserves exceeding $4.50 per share. InvestingPro data confirms this strength, showing a healthy current ratio of 2.44 and an overall Financial Health Score of "GOOD." The new price target of $23.50 is based on a 7.5 times multiple of the projected 2026 EBITDA of $46.5 million. The analyst’s outlook underscores Nature’s Sunshine’s potential for continued expansion in international markets and the online segment, suggesting a solid growth trajectory for the company.

In other recent news, Nature’s Sunshine reported its Q4 2024 earnings, revealing a revenue of $118.2 million, which exceeded the forecast of $109.46 million. Despite this revenue beat, the company maintains a conservative outlook for 2025, projecting net sales between $445 million and $470 million, citing potential impacts from tariffs and macroeconomic uncertainties. The company’s adjusted EBITDA for Q4 was $10.3 million, a 6% increase year-over-year, while the full-year net sales for 2024 reached $454.4 million, reflecting a 2% growth. Nature’s Sunshine saw robust performance in international markets, particularly in Asia Pacific, where sales grew by 18% in Q4. Digital sales also increased by 17% in the same quarter, indicating a strong digital strategy. The company holds $84.7 million in cash and cash equivalents with zero debt, providing a stable financial footing. Analyst firms have not reported any recent upgrades or downgrades for the company. Overall, these developments reflect the company’s strategic execution amidst broader economic challenges.

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