Citi Meets With Nu Skin Management: 'We Liked What We Heard On The Road'

Analyst Beth Kite said Chief Financial Officer Ritch Wood noted that "Me" would be generally available for sales in China in January, while the new air filter, slated for fall 2016, may launch as early as late September, pending government approval.

In October, the analyst said the company is introducing a promotion for Me in the United States to offer the device and first month of cartridges for $300 (vs. about $450–$500), with a commitment for six months of cartridge purchases.

Related Link: Tigress Financial Reiterates Strong Buy Rating On Nu Skin

"We like that NUS is leveraging the razors & blades model — as the refill cartridges offer NUS a very high margin, given their premium price point, and sustainable sales, as for example in Korea NUS is seeing a 65 percent repeat purchase rate," Kite wrote in a note.

Nu Skin, which plans to sell 250,000 units in the promotion over four to five months, is betting on skin care cleansing device slated to launch fall 2017.

"It will complement NUS's top-selling product, the Galvanic Spa, and have a similar sales pitch such that the reps are well-attuned to how to demo it," Kite added.

Kite raised 2016/2017 EPS estimates to $2.90/$3.35 from $$2.85/$3.25. The analyst also increased the target price by $5 to $66, which implies a potential upside of 14.3 percent over Wednesday's close of $57.76.

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