Nature’s Sunshine Products price target raised to $20 by DA Davidson

Published 02/07/2025, 13:12
Nature’s Sunshine Products price target raised to $20 by DA Davidson

Investing.com - DA Davidson has raised its price target on Nature’s Sunshine Products (NASDAQ:NATR) to $20.00 from $19.00 while maintaining a Buy rating on the stock. According to InvestingPro data, the company currently trades below its Fair Value, with impressive gross profit margins of 71.7% and a healthy financial outlook.

The research firm cited a "catalyst path to top & bottom line upside" for the company in the coming years, driven primarily by Nature’s Sunshine’s digital-first approach and volume optionality.

DA Davidson noted that current consensus estimates, including their own, appear to discount both of these potential growth drivers, suggesting room for positive surprises in future performance.

The firm highlighted that the company’s digital strategy is "casting a wider consumer net" and could help North America operations "inflect to growth as soon as 2Q25." This digital approach has already yielded margin benefits through incremental sales without associated volume incentives.

DA Davidson also pointed to volume leverage as "a fairly straightforward yet under discussed value creation opportunity" for Nature’s Sunshine, noting the company has "ample capacity and a seemingly full pipeline."

In other recent news, Nature’s Sunshine Products announced a secondary public offering of up to 2,854,607 shares of its common stock, priced at $12.00 per share. The shares are being sold by Fosun Pharma USA, Inc., with Nature’s Sunshine not receiving any proceeds from the sale. The company may purchase up to $15 million worth of the shares as part of its share repurchase program, although there is no commitment to buy a specific amount. DA Davidson & Co. is acting as the sole book-running manager for this offering. In another development, DA Davidson reaffirmed its Buy rating on Nature’s Sunshine, maintaining a price target of $19.00. The firm expressed confidence in the company’s management and its proactive strategies, despite the impending CEO transition. Current CEO Terrence Moorehead will step down once a successor is appointed, and the board has engaged an executive search firm to assist in finding a new leader. The company has also reaffirmed its full-year 2025 financial outlook for net sales and adjusted EBITDA.

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