Market Overview

USANA Health Sciences Is Worth $165/Share And It's A Buy, D.A. Davidson Says


In a report published Friday, D.A. Davidson analyst Eric M. Gottlieb initiated coverage of USANA Health Sciences, Inc. (NYSE: USNA) with a Buy rating and $165 price target. The stock is healthy and an attractive addition to an investment portfolio.

The analyst believes that the global supplements market is witnessing steady growth, driven by increasing consumer awareness of preventive health care. Currently, North America accounts for the largest mineral supplements market, followed by the Asia Pacific and Europe. However, the Asia Pacific market is expected to become the fasted growing mineral supplements market through 2014-2020, driven by its growing aging population and sustainable rise in disposable income.

USANA Health Services has delivered record sales for 19 of the past 22 years, with revenue growth of 11 percent CAGR during 2005-2014. "Building out the Associate network is the main driver to the sales increase. Revenue per Associate has declined in recent periods, but we believe that is largely a function of the spike in Associate network growth as those new to the organization are likely lower performing in the early going," Gottlieb stated.

The company has also seen impressive EBITDA and earnings growth of 15 percent and 20 percent annually, respectively, through 2008-2014. "Going forward, we anticipate growth to increase, driven by the revenue increase," the D.A. Davison report said.

USANA Health Services aims to achieve three objectives in 2015. Firstly, the company intends to expand its branding and marketing activities to improve communication between potential customers and its Associates business. Secondly, the company aims to "[i]mprove personalization via investments in product and technological innovation,' Gottlieb reported, while adding, that the company also intends to enhance its Associate Compensation Plan "with short-term, market specific incentives to encourage sales and customer growth."

Latest Ratings for USNA

Aug 2019Initiates Coverage OnHold
Jul 2019DowngradesBuyNeutral
Apr 2019Initiates Coverage OnBuy

View More Analyst Ratings for USNA
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Posted-In: D.A. Davidson Eric M. GottliebAnalyst Color Initiation Analyst Ratings


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