Goldman Sachs Initiates Coverage On GNC Holdings (GNC)

Goldman Sachs is initiating coverage on shares of GNC Holdings, Inc.

with a Neutral rating and a $22 price target. In a note to investors, Goldman writes, "We initiate coverage of GNC with a Neutral rating and a $22 price target, implying 10% upside from current levels. GNC is a leader in a rapidly growing category, capitalizing on appealing category dynamics, a nimble, multi-faceted growth strategy, and strong financial discipline. We expect outsized sales and earnings growth in 2011, after a strong 2010, with our forecast supported by strong 1Q2011 results, and consistent double-digit earnings growth thereafter. We expect GNC to exceed 2011 guidance and to hold its premium valuation on strong same-store sales growth. We also believe these factors are reflected in its current valuation." Shares of GNC lost 49 cents yesterday to close at $20.09, a loss of 2.05%.