NEW YORK (TheStreet) -- Shares of Vitamin Shoppe Inc (VSI) are down 1.46% to $43.13 after analysts at Sterne Agee said the company may sell itself after CEO Tony Truesdale announced on Wednesday that he would retire effective June 2015.
The firm said the news was surprising because of Truesdale's age --52-- and several of the company's recent initiatives, including Vitamin Shoppe's move into manufacturing through its acquisition of nutritional product maker Nutri-Force.
Sterne Agee added that the company could be thinking about selling itself to competitor GNC (GNC) or a private equity firm, and kept its $53 price target and a "buy" rating on shares of Vitamin Shoppe.
Separately, TheStreet Ratings team rates VITAMIN SHOPPE INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate VITAMIN SHOPPE INC (VSI) a HOLD. 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 revenue growth, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."