Market Overview

UPDATE: Bank of America Merrill Lynch Downgrades Nu Skin Enterprises


In a report published Friday, BofA Merrill Lynch analyst Olivia Tong downgraded Nu Skin Enterprises (NYSE: NUS) from Buy to Neutral, with a $94.00 price objective.

According to the report, earlier this week, an article in China's People's Daily suggested that NUS was engaging in improper selling practices amongst other things. The following day, China's State Administration for Industry and Commerce (SAIC) said that it would look into the People's Daily's claims. NUS announced intraday yesterday that it is launching its own review of its China branch.

“While the likely duration of the investigation into NUS is unclear, our China Strategy team noted in a July 2013 report ‘What all these investigations of foreign firms are about' that of the investigations into foreign companies it analyzed, 53% were completed within six months, but 36% are either still ongoing or have unknown end dates, suggesting to us that if resolution to Nu Skin's government inquiry is positive (i.e., no action), it may not be immediately apparent to the market,” the report noted.

The report further asserted that their scenario analysis suggest that even assuming only a 10 percent probability that NUS is ultimately out of China our implied current fair value is $85.00, with a 12 month upside to $94.00 based on 14x P/E.

NUS closed Thursday at $84.80 with shares trading down at 26.41 percent.

Latest Ratings for NUS

Mar 2019Stifel NicolausDowngradesHoldSell
Oct 2018DA DavidsonInitiates Coverage OnBuy
Aug 2018Stifel NicolausUpgradesSellHold

View More Analyst Ratings for NUS
View the Latest Analyst Ratings

Posted-In: Bank of America Merrill Lynch Olivia TongAnalyst Color Downgrades Analyst Ratings


Related Articles (NUS)

View Comments and Join the Discussion!

Latest Ratings

PEPMorgan StanleyReiterates137.0
AZRXH.C. WainwrightMaintains7.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

UPDATE: Bank of America Merrill Lynch Upgrades ITT Educational Services

UPDATE: Morgan Stanley Upgrades Abbott Laboratories