Tigress Financial Reiterates On Vitamin Shoppe

Tigress Financial Partners reiterated its Buy rating on Vitamin Shoppe Inc VSI Wednesday.

Analyst Ivan Feinseth believed that the “positive outlook for the vitamin retail industry and increasing sports nutrition sales growth...will drive greater shareholder value creation.”

“Recent negative headlines about certain supplements contributed to disappointing Q3 operating results for VSI; however, we feel this is a temporary trend which will soon pass allowing VSI to improve its economic profit in the mid-to-long term,” according to Feinseth.

The reiteration came due to the “secular health trend as well as positive fundamentals in VSI’s capital deployment (economic return spread >0 percent) and our forecasts for increasing EBITDAR margin in the NTM."

Feinseth also noted a "Reuters article from two weeks ago stating that VSI recently met with investment banks to look into hiring a financial advisor to assess a potential sale of the company.”

The report concluded that “we are optimistic on the vitamin space given the increasing focus on a nutraceutical approach over a pharmaceutical approach to a healthy lifestyle.”

Vitamin Shoppe recently traded at $45.33, up 5.42 percent.