Goldman Sachs' Increase Price Targert on GNC from $44 to $49.

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Goldman Sachs' upgrandes GNC GNC from "Neutral" to "Buy" and Increases Price Target to $49 from $44.

 

These are Goldman Sachs' Notes:

 

 

  1. GNC’s new CEO Mike Archbold possesses a track record of gross margin and SG&A discipline from stints at prior employers that suggest he can execute against these imperatives.
  2. Inventory growth has outpaced sales growth in all but two quarters since 2012. GNC will begin
  3. to correct this issue with production cuts beginning in 4Q14, as it tolerates downtime in its manufacturing facilities but
  4. cleans up its supply chain in the process.
  5. We believe there is valuation upside for a strong brand managed to a consistent growth algorithm.
  6. Growing international franchise footprint.
  7. Relative to mature retailers with similar sales and EPS growth profiles, GNC’s valuation screens attractively.
Posted In: Analyst ColorAnalyst Ratings
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