UPDATE: Morgan Stanley Upgrades GNC Holdings As Regulatory Concerns Are Overblown

In a report published Thursday, Morgan Stanley analyst Simeon Gutman upgraded the rating on

from Equal-Weight to Overweight, and raised the price target from $52.00 to $56.00. In the report, Morgan Stanley noted, "While risk/reward seemed positive when the stock touched $49, its 9% drop earlier this week on regulatory concerns has created a favorable entry point for this multi-channel, cash generative business, in our view. We peg GNC as a low double-digit earnings grower, and trading at 12.9x 2016 estimates makes it among the most attractively valued names in our space." GNC Holdings closed on Wednesday at $45.18.