NEW YORK (TheStreet) -- Jefferies dropped its stock price target to $20 from $27 on GNC (GNC) - Get Report  this morning after the retailer's CEO Mike Archbold announced yesterday he was exiting the company.

The firm maintained its "hold" rating on the stock and said it sees further downside risks to estimates. 

"GNC continues to show comp deterioration driven primarily by poor trends in vitamins and food/drink and declines at mall-based stores," Jefferies continued in an analyst note. "SG&A control was sound in the qtr, but gross margins were far worse on deleverage from negative comps, a shift away from proprietary brands, and weak margins at GNC.com."

The company had reported better-than-expected second quarter results before yesterday's opening bell, with earnings of 79 cents per share beating analysts' expectations by a penny. Revenue came in at $689.6 million, surpassing analysts projected $670.4 million. 

While GNC is expected to have a "new game plan" by the fiscal 2016 third quarter, Jefferies said it sees no easy fixes. 

Shares of GNC are up 1.43% to $20.56 in afternoon trading today. 

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate GNC HOLDINGS INC as a Hold with a ratings score of C. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its notable return on equity, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and a generally disappointing performance in the stock itself.

You can view the full analysis from the report here: GNC

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