UPDATE: Deutsche Bank Raises PT to $52 on Vitamin Shoppe
Deutsche Bank raises its price target on Buy-rated Vitamin Shoppe (NYSE: VSI) to $55, up $2, on Q4 traffic growth and GPM expansion that suggest 2012 will also look promising.
Deutsche Bank notes, "VSI reported a solid 4Q beat, with a strong, traffic-led +6.5% comp, and better-than-expected GPM expansion. VSI moves into 2012 with excellent momentum. New store growth (+10%) plans remain on-track, and we anticipate continued strong comps and op margin expansion, driving 20% EPS growth for the next several years. We continue to believe that VSI is well-positioned to capture share in the growing health supplements business, which is benefitting from secular tailwinds (e.g., aging population, greater awareness of health, rising healthcare expenses)."
VSI closed at $44.71 a share on Monday.
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