Nature’s Sunshine Products stock target raised to $24 on EBITDA beat By Investing.com

© Reuters.

DA Davidson remained bullish on Nature’s Sunshine Products (NASDAQ: NATR ) on Wednesday, raising its price target from $21.50 to $24.00 and maintaining a Buy rating.

The nutrition and wellness products company reported stronger-than-expected performance in the fourth quarter of 2023, with EBITDA surpassing expectations. On a constant currency basis, revenue increased 6% overall, with three of the four major regions seeing growth.

The company has seen significant improvement in the North American market. Constant currency revenue increased 13% in the third quarter of 2023, up from an 11% increase. This growth was achieved despite difficult comparisons with previous years. Digital sales in North America were particularly strong, growing 97% year over year and accounting for approximately 25% of total sales in the region.

Looking ahead, Nature’s Sunshine Products provided guidance for 2024, projecting constant currency sales to increase between 3% and 9%. In response to this positive outlook, DA Davidson raised its revenue estimates upward and increased its EBITDA forecast by 10% to $45.2 million, up 12% year over year.

Nature’s Sunshine Products’ long-term financial goals include achieving mid-to-high double-digit EBITDA margins, compared to the 9.1% margin recorded in 2023. The revised price target of $24.00 is based on an expected 7.5x 2025 multiple. EBITDA increased to $49.7 million from previous estimates of $44.8 million.

This article was sponsored by AI and reviewed by an editor. Please see our T&Cs for more details.