NUS - Nu Skin stock slips as Jefferies steps to the sidelines
Nu Skin Enterprises ( NYSE: NUS ) stock slid on Tuesday as Jefferies downgraded the stock to Hold.
Equity analyst Ashley Helgans explained that uncertainty in China and a weakening consumer across multiple key markets leading to a trade-down effect inform her new rating. Additionally, foreign exchange headwinds are expected to hamper earnings power.
“Though we maintain our conviction in the growth opportunity of the intersection of beauty and wellness, we also acknowledge the increasing competition within the category,” she advised clients. “Skincare accounts for 65% of their mix which does typically hold up better in recessions due to the replenishment-driven purchasing psychology. However, consumers may be less willing to branch out to new skincare and would rather stick with their tried and tested products.”
Helgans cut her price target to $39 from $43 alongside the removal of her Buy rating. Shares of the Utah-based beauty and wellness company dipped in premarket trading on light volume.
Read more on why Seeking Alpha contributor Pearl Gray Equity and Research is very bearish on the name in 2023 .
For further details see:
Nu Skin stock slips as Jefferies steps to the sidelines