USANA Health Sciences "hold"

06/06/07 - Wedbush Morgan Securities

NEW YORK, June 6 (newratings.com) - Analysts at Wedbush Morgan maintain their "hold" rating on USANA Health Sciences (USNA). The target price is set to $47.

In a research note published yesterday, the analysts mention that the company has signed a letter of intent to sell its low margin contract manufacturing business. This sale, expected to close in 3Q, is unlikely to have a significant impact on USANA Health Sciences’ earnings, the analysts say. The recent negative media reports and litigation issues could have an adverse impact on the company’s recruiting, retention, and motivation within the North America market, Wedbush Morgan adds.