Bank of America commented on Nu Skin Enterprises' (NUS) recently announced third quarter guidance revision.
Analyst Joseph Norton says the company's weak results in China are a worrisome situation, as it suggest that direct selling may already be losing steam as an occupation in China. He thinks Japanese and U.S. sales are likely impacted by a global distributor convention taking place this week; distributors are waiting for new products being launched. He sees fewer and fewer potential growth drivers in the near term and thinks the stock is likely to trend back toward its historical average valuation (13 times to 15 times) or lower until deteriorating trends reverse. He put his model under review but kept a neutral opinion on the stock.