Goldman Sachs Upgrades Vitamin Shoppe (VSI) to Buy - InvestingChannel

Goldman Sachs Upgrades Vitamin Shoppe (VSI) to Buy

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Rating Summary:

3 Buy, 7 Hold, 0 Sell

Rating Trend: Up

Today’s Overall Ratings:

Goldman Sachs upgraded Vitamin Shoppe (NYSE: VSI) from Neutral to Buy with a price target of $65 (from $60), suggesting 28% upside.

The firm said recent multiple compression provides an opportunity as they still like the supplement sector’s secular growth. In addition, Goldman is positive on the company’s incremental pursuit of own-brand product and international expansion. This brings it closer to GNC’s (NYSE: GNC) more lucrative operating model, according to the analyst.

On valuaiton, Goldman notes shares now trade near long-run relative P/E troughs.

The firm raised FY13 EPS from $2.30 to $2.35, FY14 from $2.80 to $2.87 and FY15 from $3.45 to $3.55.

For an analyst ratings summary and ratings history on Vitamin Shoppe click here. For more ratings news on Vitamin Shoppe click here.

Shares of Vitamin Shoppe closed at $50.62 yesterday, with a 52 week range of $41.62-$65.93.

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