Why Niagen Bioscience is back on investor radars

Niagen Bioscience (NAGE) is drawing fresh attention after announcing a partnership with Truemed that lets qualified customers buy Tru Niagen using Health Savings Account and Flexible Spending Account funds on its direct website.

This arrangement, which relies on Truemed’s Letter of Medical Necessity process and checkout integration, broadens payment flexibility for people seeking science backed NAD+ supplementation and may influence how investors think about Niagen’s direct to consumer business.

The Truemed partnership arrives after a softer stretch for the stock, with 1 month and 3 month share price returns of 8.5% and 15.19% declines. However, the 3 year total shareholder return of about 3x suggests longer term holders have still seen meaningful gains, which hints that near term momentum has cooled even as the longer term story remains intact.

If this kind of health focused story interests you, it could be a good moment to widen your watchlist and check out healthcare stocks as potential next ideas.

With Niagen Bioscience trading at US$6.03 and sitting at an implied discount to a US$15.80 analyst target and an estimated intrinsic value gap, you have to ask whether this is genuine mispricing or whether future growth is already reflected.

Most Popular Narrative: 62% Undervalued

Niagen Bioscience's most followed narrative points to a fair value of $16.04, well above the last close at $6.03. This sets up a very different picture from the recent share price drift.

The analysts have a consensus price target of $16.04 for Niagen Bioscience based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $23.0, and the most bearish reporting a price target of just $11.2.

Want to see what kind of earnings ramp, margin profile, and future valuation multiple would need to align for that fair value to make sense? The narrative outlines a scenario of stronger growth, rising profitability, and a premium P/E that many investors usually associate with faster growing sectors. Curious how those ingredients could add up to a price that is significantly above where the stock trades today?

Result: Fair Value of $16.04 (UNDERVALUED)

However, there are still real risks here, including tougher NAD+ competition, regulatory decisions, and higher selling costs that could all challenge that optimistic fair value story.

Build Your Own Niagen Bioscience Narrative

If you see the numbers differently or prefer to work from your own assumptions, you can build a custom view in just a few minutes: Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Niagen Bioscience.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.