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UPDATE: Bank of America Downgrades Vitamin Shoppe to Underperform on Decelerating Trends

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In a report published Wednesday, Bank of America analyst Denise Chai downgraded the rating on Vitamin Shoppe (NYSE: VSI) from Neutral to Underperform, and lowered the price target from $55.00 to $40.00.

In the report, Chai noted, “We downgraded VSI from Buy to Neutral in February on these concerns, which are now more elevated. As such, we do not believe a premium valuation is warranted. Given growing concerns, we are lowering our estimates as follows: 2013 is now $2.32 on 3.5% comps ($2.37 on a 6% comp prior); 2014 is $2.58 ($2.68 prior); and 2015 is $2.85 ($2.99 prior). We are lowering our PO to $40 (from $55), based on 17x our 2013E EPS (23x prior). We believe a multiple more inline with our Hardlines universe is justified, and we do not expect trading multiples to rerate until comps reaccelerate.”

Vitamin Shoppe closed on Tuesday at $45.24.

Posted-In: Bank of AmericaAnalyst Color Downgrades Analyst Ratings


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