Update (9:57 a.m.): Updated with Friday market open information.
NEW YORK (TheStreet) -- Barclays upgraded Vitamin Shoppe (VSI) to "overweight" from "equal weight" and set a $51 price target. The company's ability to diversify growth and management abilities drove the firm's decision.
The stock was up 2.2% to $43.60 at 9:56 a.m. on Friday.
Separately, TheStreet Ratings team rates VITAMIN SHOPPE INC as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate VITAMIN SHOPPE INC (VSI) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 5.9%. Since the same quarter one year prior, revenues rose by 17.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- VITAMIN SHOPPE INC has improved earnings per share by 15.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, VITAMIN SHOPPE INC increased its bottom line by earning $2.18 versus $2.02 in the prior year. This year, the market expects an improvement in earnings ($2.40 versus $2.18).
- The net income growth from the same quarter one year ago has significantly exceeded that of the Specialty Retail industry average, but is less than that of the S&P 500. The net income increased by 15.9% when compared to the same quarter one year prior, going from $9.68 million to $11.22 million.
- Net operating cash flow has significantly increased by 60.34% to $27.90 million when compared to the same quarter last year. In addition, VITAMIN SHOPPE INC has also vastly surpassed the industry average cash flow growth rate of -4.81%.
- VSI has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.72 is somewhat weak and could be cause for future problems.
- You can view the full analysis from the report here: VSI Ratings Report