Loading...
Loading...
In a report published Tuesday, Morgan Stanley analyst Simeon Gutman initiated coverage on
Vitamin ShoppeVSI with an Overweight rating and $54.00 price target.
In the report, Morgan Stanley noted, “We are initiating coverage of VSI with an Overweight rating and a $54 price target, as we believe the stock should benefit from both earnings upside and a possible multiple re-rating over the next 12 months. We do not believe the stock is pricing in an accelerating EPS growth rate and likely upside to consensus. Our 3% above consensus 2015 estimate of $2.90 reflects 10% sales growth and 80 bps of EBIT margin expansion and would be fueled by healthy 4-5% comps, modest gross margin expansion, stronger sales-driven expense leverage and the winding down of supply chain investments (worth $0.04-$0.05).”
Vitamin Shoppe closed on Monday at $44.41.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in