Deutsche Bank Says Nu Skin Remains Top Pick in 2013, Shares Edging Higher
Shares of Nu Skin (NYSE: NUS) are ticking off of session lows following an intraday note from Deutsche Bank.
The firm said, "We recently spoke with several direct selling CEOs, and the commentary regarding the recent FTC pronouncement against direct seller Fortune Hi-Tech Marketing and the industry are as follows: 1. The US Direct Selling Association denied Fortune Hi-Tech Marketing membership after reviewing the company's business model, showing that the DSA, of which Avon, Nu Skin, Herbalife and most others are members, is a qualified self regulatory organization that is doing its job in weeding out those with questionable regulatory practices and ensuring codes of conduct set for itself and regulators are being followed within the letter and the spirit of the law.
Avon and Nu Skin remain two of our top picks in 2013, with solid growth prospects and compelling valuation at the latter and nascent signs of turnaround progress off very undemanding top and bottom line expectations for the former. In a broader consumer staples group where valuations are extended relative to growth, investors should start to flock to the more more volatile turnaround stories."
The stock is now up 0.3 percent to around $42.90.
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