Ahead Of The Bell: NutriSystem Upgraded To 'Buy'

NEW YORK (AP) — NutriSystem Inc.'s third quarter results could point the way to improvement in 2010 for the weight loss company, a Janney analyst said Friday.

Analyst Mitchell Pinheiro said profits for NutriSystem may have reached a low point, but its results for September could be a positive sign that will create optimism about the strength of the upcoming New Years' diet season in early 2010.

NutriSystem is scheduled to make its third quarter report on Oct. 27.

Pinheiro upgraded the shares to "Buy" from "Neutral," and boosted his price target to $24 per share from $16. Shares of the Horsham, Pa., company closed at $17.22 on Thursday, and they have traded between $10.01 and $18.68 in the last 12 months.

Pinheiro raised his profit estimate for NutriSystem and said he expects additional growth from a series of new programs, including the NutriSystem D plan, which is targeted at diabetes patients, tie-ins with Schwan's Home Delivery Service and Costco, and a partnership with Wal-Mart Stores Inc. that was announced earlier this month.