UPDATE: Deutsche Bank Initiates Coverage on GNC Holdings with Buy Rating, $62 PT on Catalysts for Further Upside

In a report published Thursday, Deutsche Bank analyst Karen Short initiated coverage on

with a Buy rating and $62.00 price target. In the report, Deutsche Bank “We are initiating coverage of GNC with a Buy rating and a $62 PT. While the stock has performed extremely well YTD (up +62%), we see further upside because: 1) ROIC trends are highly correlated with the stock price (0.92 correl.), and we believe GNC's ROIC will continue to improve, 2) concurrent with improving ROIC, the valuation multiple has expanded, but the relative valuation multiple (EV/EBITDAR vs lease-adjusted ROIC) has actually contracted slightly – an indication, in our view, that further multiple expansion is warranted, and 3) GNC is ranked #2 of 16 in our Universe Ranking – which has historically been a good indicator of stock performance.” GNC Holdings closed on Wednesday at $53.73.