UPDATE: Wedbush Cuts PT to $54 on Vitamin Shoppe on Reduced Guidance
Wedbush maintained Vitamin Shoppe (NYSE: VSI) with a Neutral rating and lowered the price target from $59.00 to $54.00.
Wedbush said, "A reduction in 2013 guidance for new store openings to 50 from 57, due to co-tenants in certain development projects delaying signing leases, keeping builders from beginning work on the projects, is concerning for a unit-growth story such as VSI. Given the delays, new store openings are 2H loaded (new store openings: 20 1H; 30 2H). … Given unit growth and consistent MSD SSS growth, we believe shares of VSI should trade at an EV/2013E EBITDA multiple of 10.5x, a 20% premium to other mid-cap healthy lifestyle firms."
Vitamin Shoppe closed at $50.79 on Monday.
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