DA Davidson reaffirms buy rating on Nature’s Sunshine stock

On Tuesday, DA Davidson analysts maintained their Buy rating on Nature’s Sunshine Products stock, despite a recent 9% decline in share price. The firm kept its price target at $19.00, expressing confidence in the company’s future prospects. According to InvestingPro analysis, the stock appears undervalued at current levels, with analyst targets ranging from $19 to $21.

Nature’s Sunshine Products, trading under (NASDAQ:NATR), faced a sell-off following the announcement that CEO Terrence Moorehead will step down. Despite this leadership change, DA Davidson analysts believe the company is well-positioned to handle the transition smoothly, supported by impressive gross profit margins of 71.7% and a strong current ratio of 2.4x.

The analysts noted that Nature’s Sunshine is cycling out of challenging comparisons in its North American operations. They observed signs of improvement that could positively impact both estimates and investor sentiment.

Additionally, the company’s proactive management strategies, a clean balance sheet, and a recent $25 million share repurchase program are seen as factors that could enhance shareholder value. The analysts emphasized that Nature’s Sunshine remains on solid ground as it prepares for a leadership transition.

In other recent news, Nature’s Sunshine Products reported impressive first-quarter 2025 earnings, surpassing market expectations. The company achieved an earnings per share (EPS) of $0.25, significantly higher than the forecasted $0.17, and exceeded revenue projections with $113.2 million against the anticipated $109.42 million. This strong performance was driven by notable growth in digital sales and robust results in Asia Pacific and Europe. Additionally, Nature’s Sunshine reaffirmed its full-year 2025 financial outlook, maintaining previous guidance for net sales and adjusted EBITDA. The company also announced a $25 million share repurchase program, indicating confidence in its future prospects.

In leadership developments, Nature’s Sunshine disclosed that CEO Terrence Moorehead will step down upon the appointment of a successor, with a search for a new leader already underway. DA Davidson resumed coverage on the company, assigning a Buy rating and adjusting the price target to $19, citing the company’s strong financial position and recent performance. The firm noted Nature’s Sunshine’s sequential improvement across regions and visible growth opportunities. These developments reflect the company’s strategic focus on digital transformation and operational efficiency, contributing to its positive outlook.

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