Canaccord starts Nature’s Sunshine with Buy into margin expansion

Canaccord analyst Susan Anderson initiated coverage of Nature’s Sunshine with a Buy rating and $18 price target. Nature’s is a natural-focused vitamin and supplement company focused on offering natural but efficacious products for various health and wellness needs, the analyst tells investors in a research note. The firm believes Nature’s Sunshine is “on the cusp” of driving margin expansion as sales grow with its three strategies centered on investing into the higher-margin and faster-growing digital business, building out its international business in key markets, and focusing on innovating in a space that has seen increased interest from consumers. These initiatives should allow the company to reach the 15% adjusted EBITDA margin goals by fiscal 2028, up from 9% in 2023, says Canaccord. It believes there is “healthy upside” as Nature’s carries out its growth and margin expansion strategy.