Citi Sees 12.6% Upside In Nu Skin Shares; Lifts Estimates, Price Target

Analyst Beth Kite has raised 2016 EPS estimate to $2.80 (flat year-over-year) from $2.75 and 2017 EPS view to $3.22 (+15 percent year-over-year) from $3.10. The Street expects EPS of $2.75 and $3.15 for 2016 and 2017, respectively.

NU Skin recently announced strategic investment in the form of $210 million convertible senior notes, which the company intends to use for share repurchases.

Related Link: Social Media: The Multi-Level Marketing Breeding Ground

"We previously valued NUS at a 10 percent discount to the market multiple due in part to caution on its launch plans in China, for which we now have more visibility. With our 2017 EPS estimate of $3.22, this yields a target price of $52, representing an ETR of greater than 15 percent, such that we maintain our Buy rating," Kite wrote in a note.

"We think the potential lift to reps and sales from Me and Youth in 2H16 makes the entry point of 14x compelling," said Kite, who raised the price target to $52 from $45.

Nu Skin closed Friday's regular trading session up 2.14 percent on the day at $47.18.