Stryker shares tumble despite strong Q2 results and raised guidance
On Tuesday, DA Davidson maintained a neutral rating on Nu Skin Enterprises (NYSE:NUS) while increasing the price target to $7.50 from the previous $7.00. The revision follows Nu Skin's fourth-quarter earnings per share (EPS) surpassing consensus expectations, despite a 4.7% decline in constant currency (CC) sales, which was better than the estimated 9.4% decrease. While the firm acknowledged ongoing challenges in China and Korea, InvestingPro data shows the stock has gained nearly 17% in the past week, with impressive gross profit margins of 70.5%.
Nu Skin is expected to introduce a new iO device in the second half of 2025, as part of its efforts to address the company's structural challenges and industry headwinds. While DA Davidson analysts noted the slowing rate of organic sales decline and potential market recovery in 2025, uncertainty remains about growth prospects. According to InvestingPro analysis, the company maintains strong liquidity with a current ratio of 1.82, and has maintained dividend payments for 25 consecutive years, demonstrating financial stability despite current challenges.
The decision to adjust the price target was influenced by an increase in the estimated EBITDA for 2026, which DA Davidson raised from $151 million to $163 million. The new price target is based on a 4x multiple of the projected 2026 EBITDA.
The report from DA Davidson suggests that while Nu Skin reported better-than-expected earnings and a moderated rate of sales decline, the company still has to navigate through significant industry challenges. The analysts' outlook remains cautious, reflecting the uncertainty surrounding Nu Skin's potential for a turnaround and sustainable demand for its products.
In other recent news, Nu Skin Enterprises reported that its preliminary revenue for the fourth quarter of 2024 is at the high end of its guidance range. The company also announced the sale of its Mavely affiliate marketing technology platform through its subsidiary, Rhyz Inc., to Later for approximately $250 million. This strategic move is expected to enhance Nu Skin's capabilities in the beauty, wellness, and lifestyle ecosystem.
Further financial details for the fourth quarter and the full year of 2024 will be disclosed after the market closes on a future date. In addition to these developments, DA Davidson has revised the price target for Nu Skin Enterprises, bringing it down to $7.00 from the previous $11.00, while maintaining a Neutral rating on the stock.
These recent developments are a part of Nu Skin's ongoing business strategies and performance. The company continues to engage with the investment community and is set to present at the upcoming ICR Conference, where further discussions on the company's performance and strategies will be held.
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