BTIG: Nu Skin's China Issues 'Are In The Past, But Will The Difference Be Demonstrated?'

Following Nu Skin Enterprises, Inc. (NYSE: NUS) Investor Day, April Scee of BTIG Research commented in a note on Wednesday that the company's China issues are in the past.

“At its Investor Day last week, management stressed China should begin to inflect and unveiled its innovation agenda and fiscal 2015 guidance,” Scee wrote. The analyst adds that the company's guidance for the coming year is “not far from Street, but guiding for China growth may prove difficult in absence of innovation.”

Scee notes that Nu Skin's management believes direct sales within China are still favorable and it is receiving new licenses to operate in cities like Shanghai. However, the analyst states that she needs more visibility to “get more positive.”

Bottom line, Scee expects improving execution, but consumer growth may only be a fiscal 2016 event.

Shares are Neutral rated with a $39 price target.