Analyst: Nu Skin Enterprises Inc. 'Rebuilds' China Business

Nu Skin Enterprises Inc.

may be in the dog house for many investors, but an analyst said the launch of its new anti-aging "system" will boost sales growth. The Provo, Utah-based direct sales company gets 72 percent of its sales from Asia including China, and is poised to launch to variations of the product called ageLOC YOUTH and ageLOC me. Deutsche Bank analyst William Schmitz Jr. said the products are "designed to defy age or improve youth span," and are "tailored specifically to each individual in a non-complex, synergistic manner." Schmitz reiterated a Buy rating on Nu Skin and $64 target. Nu Skin shares are off nearly 72 percent in the year to date and changed hands recently at $39.38, up $0.64 cents. Last week the company offered 2015 outlook below Wall Street's expectations. Earlier this year, Chinese regulators levied a $540,000 fine on Nu Skin for allegedly misleading customers about its products' effectiveness and for illegal sales. Nu Skin got 19 percent of its 2013 revenue in China. Regulators there in May imposed a three-month suspension of direct seller recruitment drives. Nu Skin "is thoughtfully working to rebuild China with a more sustainable but slower-growing business model," Schmitz said. "We continue to see solid risk/reward in the name."