UPDATE: DA Davidson Upgrades Schiff Nutrition International to Buy

DA Davidson has published a research report on Schiff Nutrition International

and has upgraded the company from Neutral to Buy. In the report, DA Davidson wrote, "Total branded sales grew 49.2% from last year, below our estimate of 58.3% growth. The company would not say whether the base business grew as well – which in a model driven by acquisitions is a bit of a concern. The improved mix of branded versus private label sales resulted in gross profit margin of 47.1%, compared to last year's 44.9%. Note that the inventory step-up on Airborne increased COGS by $1.55 million in Q1, and will be $1.0 million in Q2. We are modeling gross margin in Q2 and FY13 of 49.5% and 49.8%, respectively. Q1 EBIT margins were 14.5%, up from 13.3% last year." DA Davidson also raised the price target from $18 to $29 on Schiff Nutrition International, which is currently trading up 15.02 percent from Monday's $20.90 closing price.