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Recent Selloff In Nautilus Shares Has Created A Buying Opportunity

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Recent Selloff In Nautilus Shares Has Created A Buying Opportunity

Shares of Nautilus, Inc. (NYSE: NLS) have fallen 10 percent over the past three months, and the decline has created a buying opportunity, according to analysts at Aegis Capital Corp. The firm's Rommel Dionisio initiated coverage of Nautilus' stock with a Buy rating and $21 price target.

Nautilus has proven itself to be a stellar performer in the fitness industry with a double-digit organic revenue growth rate and impressive operating margin expansion, Dionisio commented in his initiation report. Specifically, organic sales grew at a compounded annual growth rate in excess of 20 percent from 2012 to 2015 while margins improved from 5.5 percent in 2012 to 13 percent today.

The company's success can be attributed to new product introductions such as the first ever home gym tailored to CrossFit workouts and penetration in overseas markets where sales grew 265 percent last year outside of North America.

Nevertheless, Nautilus' stock has been selling off over the past few months, mostly due to the company's decision to scale back advertising during the 2016 election period and the impact of recent sporting goods store closures, the analyst noted. Accordingly, the company posted poor sales and earnings but this is poised to reverse.

Looking forward Nautilus is expected to post a more normalized double-digit organic sales growth rate in the bottom half of 2017. As such, the stock's recent selloff represents an attractive buying opportunity for investors.

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Image Credit: "A competitor stresses during CrossFit Integrity, the Integrity's Revenge Battle of Charleston CrossFit games October 6, 2012 in Charleston, S.C. CrossFit is growing in popularity everyday as even the U.S. Military has integrated it into their physical fitness regime." By SrA James Richardson [Public domain], via Wikimedia Commons

Latest Ratings for NLS

DateFirmActionFromTo
Jul 2019UpgradesIn-LineOutperform
Feb 2019DowngradesBuyHold
Jan 2019DowngradesBuyNeutral

View More Analyst Ratings for NLS
View the Latest Analyst Ratings

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