Jefferies Offers 4 Reasons To Like Nu Skin Enterprises

Shares of Nu Skin Enterprises, Inc. NUS are an attractive investment for four key reasons, according to Jefferies. 

The Analyst

Jefferies' Stephanie Wissink initiated coverage of Nu Skin Enterprises with a Buy rating and $98 price target.

The Thesis

Nu Skin's stock has outperformed the broader S&P 500 index over the past year, but there is room for further gains, Wissink said in the initiation note.

The maker of personal care products recently made improvements to its selling structure, including simplified programs, clear and effective rewards and product distinction that offers sellers a "viable income opportunity," the analyst said. 

Ninety percent of Nu Skin's product mix is "rooted in science" to the point where it approaches medical technology and pharmaceutical standards, Wissink said. This creates a need for a more "educated seller" and warrants "prestige pricing." 

The Chinese market accounts for 30 percent of total company sales and 40 percent of reps. Encouragingly, the Chinese beauty market is poised to grow by 8 percent over the coming five years, while the skincare and anti-aging segment in China is expected to outperform the global industry.

Price Action

Nu Skin Enterprises shares were trading higher by 1.69 percent at the time of publication Thursday at $83.40. 

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