UPDATE: Auriga Lowering Price Target on
Auriga is out with a research report on Nutrisystem (NASDAQ: NTRI) and it has a Buy rating and is lowering its price target to $17 from $19.
In a note to clients, Auriga writes, "Nutrisystem reported 3Q11 results that were below our expectations as well as consensus. During 3Q11, Nutrisystem was adversely affected by weak consumer confidence as well as accelerated costs associated with its 2012 growth initiatives and planned promotions. While EPS of $0.21 was below our $0.25 estimate, Nutrisystem's revenue of $85.6 million was significantly below our $107.5 million estimate. Despite the shortfall, we believe that Nutrisystem remains a 2012 story with a refreshed menu, new retail products and potential expansion into other outlets, such as the medical field. While we are lowering our 4Q EPS to $0.00 from $0.16, FY11 EPS to $0.48 from $0.68, and FY12 estimate to $1.13 from $1.21, we are reiterating our BUY recommendation due to the potential turnaround. We are, however, reducing our PT to $17 from $19 to reflect the tough environment."
Shares of NTRI closed at $11.98 yesterday.
