NEW YORK (TheStreet) -- Bank of America/Merrill Lynch downgraded Nu Skin Enterprises (NUS) to "underperform" from "neutral," cut its estimates and set a $63 price target. The firm cited low visibility of a potential turnaround.
The stock was down 4.53% to $63.50 in pre-market trading on Friday.
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Separately, TheStreet Ratings team rates NU SKIN ENTERPRISES as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate NU SKIN ENTERPRISES (NUS) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 0.1%. Since the same quarter one year prior, revenues rose by 24.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- NU SKIN ENTERPRISES has improved earnings per share by 16.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, NU SKIN ENTERPRISES increased its bottom line by earning $5.94 versus $3.52 in the prior year. This year, the market expects an improvement in earnings ($6.22 versus $5.94).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Personal Products industry average. The net income increased by 18.4% when compared to the same quarter one year prior, going from $54.28 million to $64.26 million.
- The gross profit margin for NU SKIN ENTERPRISES is currently very high, coming in at 85.93%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 9.57% is above that of the industry average.
- You can view the full analysis from the report here: NUS Ratings Report