Canaccord Reduces Target On USANA Health Ahead Of Q3 Results


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


  • Analysts at Canaccord recently shared a preview of USANA Health Sciences, Inc. (NYSE: USNA)’s third-quarter results.
  • Ahead of the earnings call, the firm reiterated a Hold rating on the stock, while trimming its price target from $136 to $131.
  • Shares of USANA are down roughly 0.20 percent on Thursday trading.
  • In a report issued Wednesday, Canaccord analysts Scott Van Winkle and Mark Sigal shared a preview of USANA’s third-quarter results. They expect growth in China to remain strong, driving another quarter of approximately 20 percent year-over-year total growth.

    The experts noted, however, that currency is an incremental headwind across USANA's Asian markets (especially the Chinese yuan), which they suspect need a downward revision in Street estimates.

    Outside of Greater China, the analysts expect “relative sequential stability in revenue and associate count,” with currency impacting slightly more than initially anticipated.

    Rating

    Having said this, the firm maintains a Hold rating, based on the belief that the current valuation adequately “reflects the growth trend,” given the considerably lower valuations seen among USANA’s peers.

    Nonetheless, Winkle and Sigal also pointed out that the recent selloff in the stock, triggered by Nu Skin Enterprises, Inc. (NYSE: NUS)’s negative third-quarter results pre-announcement, looks overdone. “While USANA isn't immune from China economic pressures and sales shift into Q2 will mute growth, we are confident that Nu Skin's challenges are company specific,” they stated.

    Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

    Image Credit: Public Domain

    27% profit every 20 days?

    This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


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    Posted In: Analyst ColorLong IdeasHealth CarePrice TargetPreviewsReiterationAnalyst RatingsTrading IdeasGeneralCanaccordMark SigalScott Van Winkle